Agrium approves Texas nitrogen facility expansion

Agrium announced Tuesday that its board of directors has approved an expansion at its nitrogen facility in Borger, Texas.

The expansion project will add a new urea production unit of approximately 610,000 tonnes, of which approximately 100,000 tonnes will be Diesel Emission Fuel (DEF) grade urea. 

DEF is used to reduce nitrogen oxide (NOx) emissions in diesel vehicles. The project will also increase the annual ammonia capacity for the facility by approximately 145,000 tons, bringing the total annual gross ammonia capacity to approximately 635,000 tons . 

The total capital cost of the project is expected to be approximately $720 million. 

Construction will fully commence in March 2014, with completion expected in the second half of 2015. During this construction period, the Borger facility is expected to operate at normal production rates.

"Agrium is one of the largest and lowest cost producers of nitrogen in the world," said Agrium CEO Chuck Magro. "The upgrade and expansion at the Borger facility will continue to grow our nitrogen footprint in this important agricultural region while providing a strong return on investment. The project will ensure the facility’s future longevity, while using the latest in environmental control technology."

“The expansion project will also provide greater flexibility to meet changes in demand by product and region and reduce our reliance on existing ammonia distribution channels,” he added.