YPFB aims to double urea production with a second plant that will consume 1 TCF in 20 years

This YPFB release was published using machine translation.

La Paz, Jan 26 (AN-YPFB). – Given the growing global demand for urea, the second plant of this fertilizer is one of the industrialization megaprojects that Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) will begin this year with studies and engineering designs. It is projected that in 20 years it will consume 1 trillion cubic feet (TCF) of natural gas.

“Our goal is to build the second urea plant, we are analyzing the details (…). We aim to double the capacity of the Ammonia and Urea Plant (PAU) and turn Bolivia into a fertilizer hub," said Armin Dorgathen, president of YPFB.

Currently the PAU, located in Bulo Bulo-Cochabamba, has a production of 364.6 thousand metric tons of urea per year. In addition, its high quality has allowed it to quickly gain markets (Argentina and Brazil) that had been lost in 2020 and today the demand is growing from Paraguay, Brazil, Argentina and European countries, among others, that seek to acquire the Bolivian product.

“An example of the demand and the opportunity is that we have Brazil, which is a consumer monster. There is a wide market demand since 10 urea plants, such as PAU, would supply only the state of Mato Grosso," the authority specified.

In Brazil, Bolivian urea can generate a competitive advantage due to logistics, since this country is close to Bolivia, while urea from other continents, which arrives there, has very high logistics costs.

Urea, in addition to demonstrating the success of industrialization, is a clear example of food safety. "Urea as a fertilizer guarantees us food and not only for Bolivia but for the region, which is why we started this management with the engineering for the construction of the second plant and to be suppliers to the region."

CONSUMPTION.

The prestige of Bolivian urea, in addition to transcending borders, is positioned in Bolivia with outstanding data. The national product reduced imports of fertilizer in the domestic market by 99%, contributing to agricultural production in the country.

Given this, the second urea plant is a necessity and this project will form part of an Integral Petrochemical Complex. To date, the contracting of the PRE-FEED Engineering study is being managed. "In the 2022 term, YPFB's Engineering, Projects and Infrastructure Management carried out the conceptual engineering study for this second Urea plant. We have a high demand for fertilizer, both in the country and abroad, so we will continue to industrialize the gas to offer our urea to the world," the authority specified.

To start this project, it is planned to tender the study during this administration. The cost of the pre-investment stage is USD 1.29 MM, of which USD 1.11 MM will be executed during this year.

Dorgathen referred to the gas that is going to be used for this second urea plant, which projects a consumption of 1 TCF in 20 years, a hydrocarbon that we have. In addition, the state oil company is developing the exploratory plan for greater gas production.

The industrialization of gas is a success that generates employment, development and continues to advance to add value to our natural resources for the good of the economy of all Bolivians.