Furthermore, the strategy to recover investments in fertilizers includes the reinstatement of Ansa, located in Paraná, aiming to further boost production and the agricultural market. This new plan aims to completely reinvigorate the fertilizer industry in the state, bringing significant benefits to the local and national economy.
Petrobras' plan to return to the fertilizer production market includes the resumption of operations at the Nitrogenated Araucaria (Ansa) in Paraná by the end of 2024, as well as the start of production of UFN 3 in Três Lagoas (MS) in 2028.
The company is also in negotiations to close a tolling contract with Unigel in order to make fertilizer factories (fafens) located in Bahia and Sergipe. In this model, the state-owned company will supply the gas and retain the fertilizers, paying only for the use of the manufacturing facilities. This tolling agreement will allow Petrobras to resume its operations in an agile and efficient manner, without having to invest in the construction of new factories.
The company's executive director of industrial processes and products, William França, shared the data during a press conference held on the morning of Friday, November 24.
According to França, the resumption of Ansa will include the fertilizer project, which will be implemented more quickly. The factory has been inactive since 2019. The resources to restart operations are already foreseen in the board's new budget plan and will be allocated mainly for the maintenance of the unit.
This initiative will significantly impact the company's performance in the coming years.
Plans to Reactivate a Plant de Production
“We are finalizing the needs assessment to carry out a competition process. Later, with the competition ready and with the work group's assessments analyzing responsibilities and human resources, for example, we then made the decision to return to operating this plant", said.
França also stated that the company is in negotiations with a possible partner to replace the gas natural used in production de fertilizers by gas generated from biomass, biogas.
The leader of Petrobras, Jean Paul Prates, also validated the commitment to finalize the workit's the UFN 3, in Três Lagoas, which were stopped in 2014. The unit was even put up for sale during the Bolsonaro government, but the attempt was not successful. However, the continuation of works will depend on new financial analyses.
“The objective is to complete the work, but the method for this can be variable. In China, we had conversations with potential partners interested in completing the project and becoming shareholders. This possibility may materialize or, alternatively, we may conclude the work on your own and then look for partners”, said Prates.
The director of industrial processes and products, William França, highlighted that the UFN 3 has the advantage of being more efficient than other facilities in the Petrworks. “It is more profitable and, with the same amount of gas, produces 60% more urea. It is expected to come into operation in 2028, but we are committed to optimizing this deadline, if the viability of the operation is confirmed,” he stated.
Additionally, the Petrworks also stated that it is in talks with Proquigel, a subsidiary of Unigel, to establish a tolling agreement for the production de fertilizers located in Sergipe and Bahia.
Through this agreement, Proquigel will continue to pay for the leasing of the factories and the sale of urea, while Petrworks will provide gas natural for operations.
The partnership between the two companies aims to maintain the production de fertilizers and guarantee supply to the Brazilian market.
Units leased to Unigel in a delicate financial situation
A Unigel leased the units on a ten-year lease. In a state of financial crisis, the company has argued that the current cost of gas natural resources provided by the state-owned company are preventing the continuity of operations of factories.
According to a company representative, “The concept is not to help anyone, it is to help us. Both plants are our assets. The alternative to this would be to discontinue plantif you return them.”
The agreement was advanced by the governor of Sergipe, Fábio Mitidieri, during an interview with the epbr studio. See the full interview below:
Prates mentioned that the tolling agreement aims to give Petrworks more time to decide what the fate of the projects will be.
During the six-month period, which may be extended for another six months, an effort will be made to find an alternative solution: either bringing back the operations de production, establishing a partnership with the company, involving a third partner or integrating with other ventures. We are also considering a project to production of hydrogen, which is very promising.
According to França, one of the options being analyzed is to use the factory in Bahia to production of green ammonia destined for export.
The executive leader declared that the re-entry of the state-owned company into the fertilizers it is related not only to the need to meet internal demand, but also to the company's position in the energy transition. “It is from there that new products will emerge, such as green ammonia and fertilizers of the future, so it is crucial that we have a share of the market, we want to participate in the game”, he stated.
Regarding the profitability of projects, Prates emphasized that the company needs to diversify its activities in the context of the energy transition, and that it can benefit from logistical and operational capacity, as well as access to raw materials to implement profitable projects in this sector.
Investments in Projects Fertilizers They Are Not Harmful, Says Executive Director
“Of course, if we compare an isolated pre-salt reserve, for example, with a fertilizers, the profitability will not be the same, but this does not mean that it is a loss to invest in fertilizers”, He explained.
The financial and investor relations executive, Sérgio Leite, highlighted that the criteria used to determine investments remain the same for investment projects. fertilizers.
According to the source, all investments are subject to governance, with some requiring greater attention than others. Decision-making for investments takes into account the creation of value, margins and financial attractiveness, whether in the fertilizers or in any other area.
Source: EPBR
