Bajan
investors eye big T&T ammonia project
The
Trinidad Guardian
Port
Spain
Petroleumworldtt.com
07 16 07
The Aurora Nitrogen project, sponsored by Trinidad
Energy Investments Ltd (TEIL) is alive and well with
the “most important issue still outstanding” being
the receipt of a natural gas contract from the National
Gas Company.
Giving an update on the project, which was mentioned
in the Mixed Assets column on June 28, a source
close to the company said that the project sponsors
had been assured that Aurora Nitrogen would be
given priority consideration in the next round
of gas contract negotiations.
“Once we have a gas supply term sheet, rapid
progress can be expected in development of the
project and start of construction,” said
the official in an e-mail.
In October 2005, the Government signed a Memorandum
of Understanding with a group of local investors
operating through TEIL for the establishment of
a new ammonia and urea plant at Point Lisas.
Among the locals associated with the project are
insurance company owner, Gerry Hadeed, attorneys
Karl Hudson-Phillips and Garvin Simonette and former
Clico Energy boss Kerston Coombs.
The Business Guardian understands that one of
the most prominent entrepreneurs in Barbados and
a top US investment bank have also expressed serious
interest in participating in the project.
T&T and Barbadian interests will comprise
about 50 per cent of the equity in the project
which makes it unique “in that a significant
portion of the equity has been
pledged
by local and regional institutions,” according
to the update.
Speaking on Tuesday, the official said the project
was likely to cost more than the US$650 million
price given in October 2005, given the sharp escalation
in the cost of construction since then.
It is envisaged that the Aurora Nitrogen project
will comprise an ammonia plant of 2,200 metric
tonnes a day of production and 3,250 metric tons
a day urea plant plus utilities, storage and shipping
facilities.
The proposed plant site has been secured and is
located immediately to the south of the Phoenix
Park Gas Processors Ltd (PPGPL) complex.
Soil investigations have been completed and a
Certificate of Environmental Clearance (CEC) for
site preparation has been issued by the Environmental
Management Authority (EMA).
The plant will have access to the new port being
developed in the area by the National Energy Corporation
(NEC).
Progress, to date, includes preliminary engineering
design, feasibility studies including market studies,
initial costing of local construction and environmental
impact studies.
As
a result of these efforts, commitments have been
secured for the debt and equity financing
and a draft off take agreement has been initialed
with a major marketer of urea. The marketer already
operates in T&T.
The
Trinidad Guardian
Thursday 12th July, 2007
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