OCI Nitrogen, Janus JV buys ammonia-methanol plant in Texas

OCI Nitrogen, Janus JV buys ammonia-methanol plant in Texas

3:37 PM, 17th May 2011
OCI Nitrogen, Janus JV buys ammonia-methanol plant in Texas
Nassef Sawiris, Chairman and Chief Executive Officer, Orascom Construction Industries.

 

CAIRO, EGYPT: OCI Nitrogen (Netherlands), a subsidiary of Orascom Construction Industries (OCI), has acquired an integrated ammonia-methanol plant located at Beaumont, Texas, on the Gulf Coast of the United States through a joint venture with Janus Methanol (Switzerland). In the joint venture with Janus Methanol AG, named Pandora Methanol LLC, OCI holds 50 per cent plus 1 share.

The acquired plant has a production capacity of 250,000 ton of ammonia and 750,000 ton of methanol per annum. In addition, the plant has an ammonia tank with a capacity of 18,000 ton and two methanol storage tanks with a capacity of 22,000 ton each.

The plant, acquired from Eastman Company, will be jointly rehabilitated and operated by OCI Nitrogen and Janus. The rehabilitation work will amount to approximately $ 65 million by year end, informed OCI. Ammonia production is expected to commence in the fourth quarter of 2011 and methanol production is targeted to start in 2012. The joint venture is currently also studying the possibility of increasing both production and storage tank capacity on-site.

“The acquisition of integrated ammonia-methanol facility in the US provides us with a new production platform in a key market. The facilities of the joint venture will provide the group with the option to serve customers in the US. We believe that upon startup, this business will generate exceptional returns to shareholders,” said Nassef Sawiris, Chairman and Chief Executive Officer, Orascom Construction Industries.

(C) WOC News

 

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