Mumbai, Apr, 12 (EPC News): Tata Chemicals Ltd (TCL) recently acquired 25.10% stake for US $290 million in stream 1 of a greenfield port-based ammonia urea fertilizer manufacturing complex in the Republic of Gabon, Africa.

Other shareholders in the project are Olam International Ltd (Olam) with 62.90% and Republic of Gabon (RoG) with 12% equity.

The project comprises setting up of 1.3 million tonnes per annum (mtpa) of urea (stream 1) with an option to expand into another stream of 1.3 mtpa of urea (stream 2). While the execution of stream 1 has already commenced, the stream 2 option will be evaluated and decision to implement the same is expected to be taken in about 24 months.

Stream 1 of the overall project has a 36-month development and construction period and the full operational capacity would be 1.3 mmt urea p.a. (2,200 mt ammonia and 3,850 mt urea per day). Combined, the project can potentially have a capacity of 2.6 mmtpa.

The plant is envisaged to be one of the lowest cost urea manufacturing facilities globally. RoG would provide requisite land to the project, sufficient gas at competitive fixed price for both the streams under a 25-year competitive fixed price natural gas contract and 10 year tax holiday after commencement of commercial production and
10% concessional tax rate thereafter.

TCL would provide the Project Management Consultancy and Operations and Maintenance Service post the project commissioning.

TCL, Olam and RoG would also set up a sales and marketing joint venture (SMJV) for selling entire output of the project.

TCL, Olam and RoG will hold 42.5%, 42.5% and 15% equity stake respectively in SMJV.

EPC News Bureau

Posted by: epcworld | Posted on:4/12/2011 at 7:49 AM