Suframa, Brazil's free trade zone management company, has concluded feasibility studies for a future gas-chemical complex at an investment of US$1.1 bln. Ready availability of feedstock and a downstream processing industry to consume petrochemicals provide optimium conditions for the complex. The idea is to take advantage of the natural gas produced by federal energy giant Petrobras in the Urucu region, with the conclusion of the 650km Coari-Manaus pipeline, set for the end of 2008. Urucu is one of Brazil's largest gas reserves and the pipeline project will link Petrobras' Urucu light crude and natural gas field in the western Amazon region directly to the city of Manaus, where the new complex is planned to be located.
Natural gas from the Coari-Manaus pipeline will supply production of ethane, ethyl benzene, methane and fertilizers in the complex, as well as to supply other power plants in the region.
One plant, to separate ethane from the natural gas will be built at an investment of US$15 mln. The second plant, to be built at an investment of US$320 mln will use ethane to manufacture ethylbenzene, which will be partially be used in the downstream production of styrene and partially be sold to in domestic as well as overseas markets. The styrene unit is planned with a capacity of 560,000 tpa at an investment of US$40 mln. The third project will manufacture methane and use the gas which has the ethane removed. The methane will be used to supply biodiesel production in the region. The fourth unit in this gas-chemical complex will make raw material for fertilizers, producing ammonia (1.6 M tpa) and urea (730,000 tpa) t an investment of US$300 mln.
All investment contracts are expected to be settled by the end of 2009 and the entire project is scheduled for completion in 5-6 years.
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