Operation of UFN3, which had a capacity projected by Petrobras at 3.600 tons/day of urea and 2.200 tons/day of ammonia, has been at a standstill since 2014.
Petrobras disclosed in a material fact to the Market on the afternoon of June 1sto, which, in continuity with the announcement released on 28/04/2022, started the opportunity disclosure stage (teaser), referring to the full sale of the Nitrogenated Fertilizers Unit III (UFN-III).
The construction work at UFN3 was paralyzed in December 2014, with around 80% of the works completed, after Petrobras terminated the contract with the consortium responsible for building the factory, which at the time had already consumed more than R$ 3 billion .
According to Petrobras, the teaser, which contains the main information about the opportunity – including the forecast that the buyer will commit to completing the plant – as well as the eligibility criteria for the selection of potential participants, is available on the Petrobras website.
“The main subsequent stages of the project will be informed to the market in due time”, informed the state-owned company.
Petrobras fails to sell the fertilizer factory (with works at a standstill since 2014) to the Russian group Acron and multinational Unigel enters the bid for UFN3
Petrobras disclosed in a Material Fact to the Market on April 28, that the sale process of the Nitrogenated Fertilizers Unit III (UFN-III), in the municipality of Três Lagoas, with the Russian group Acron was not concluded, "bearing in mind that the business plan proposed by the potential buyer, replacing the original project, made it impossible to obtain certain government approvals that were necessary for the continuity of the transaction".
UFN-III is an industrial unit of nitrogen fertilizers located in Três Lagoas, in the state of Mato Grosso do Sul. The construction of UFN-III began in September 2011, but was interrupted in December 2014, with physical progress of around 81%. Once completed, the unit will have a projected urea and ammonia production capacity of 3.600 t/day and 2.200 t/day, respectively.
One of the largest petrochemical companies in Latin America to buy UFN3
Petrobras' fertilizer factory is already in the sights of new companies. Aiming to expand its operations in the sector, Unigel, one of the largest petrochemical companies in the production of nitrogenous fertilizers in Latin America, is interested in purchasing the project designed to produce urea and ammonia, with a view to expanding its activities in the sector. The information was confirmed by the CEO to Reuters.
The operation of the unit, which had a capacity projected by Petrobras at 3.600 tons/day of urea and 2.200 tons/day of ammonia, could help Brazil to reduce its dependence on the imported product, while the country deals with difficulties arising from the war between Ukraine and Russia.
“The company already invests in fertilizers in Brazil, and is interested in concluding the UFN-III and occupy 50% of the fertilizer market”, highlighted one of the Reuters sources.
Unigel has more than 2,9 million tons of installed capacity, with 925 thousand tons of ammonia, 1,125 million tons of urea and 670 thousand tons of ammonium sulfate, according to company information.
