Mota-Engil informs about the signing of an agreement in Mexico
Published by Jack Roscoe,
Editorial Assistant
World Fertilizer,
MOTA-ENGIL has informed that, through its subsidiary MOTA-ENGIL MEXICO, has signed an agreement with Pemex Transformación Industrial, a subsidiary of the state run Mexican national oil company, Petróleos Mexicanos (PEMEX), for the construction of a fertilizer industrial plant located in Escolin, Poza Rica, State of Vera Cruz.
The agreement envisages the development of the engineering, construction, financing and operation of a production plant of ammonia, urea and AdBlue with an annual production equivalent to above 700 000 t.
The construction of this plant will allow the decrease of imports of fertilizers and will significantly strengthen the production autonomy of the country’s agriculture sector, besides promoting sustainable environmental solutions, through the reduction of polluting gas emissions to the atmosphere, which the incorporation of Adblue in fuels promote.
This innovative contract, under a ‘tolling’ model, establishes that the client delivers the main raw materials (gas and water) to the operator, who will be the only responsible for their transformation and for the delivery of the final product, without price change risk of the raw materials and/or any responsibility in the sale of the final product.
The project will be developed in three phases, being the first phase the development of engineering feasibility studies with a duration of four to six months. The second phase, construction, is expected to length 42 months and will have an investment of US$1.2 billion and will be followed by the technical operation of the plant for 20 years. Under the agreement, the remuneration will be based on availability payments during the 20-year operation period of the plant, and the investment remuneration will correspond to a fixed tariff, annually updated at the inflation rate, while the operation remuneration component is linked to performance.
MOTA-ENGIL MEXICO will be the company responsible for the global coordination of the project and will integrate the associated company, DURO FELGUERA, which will bring its extensive experience and specialised know-how in the industrial and energy construction sectors. Being this agreement, the first project working together, future partnerships are expected to arise within the context of the new cycle of energy transition and in industrial projects related to the nearshoring, for which MOTA-ENGIL MEXICO wants to be a relevant player by reinforcing Mexico’s competitive capacity in the region.
Read the article online at: https://www.worldfertilizer.com/project-news/17072024/mota-engil-informs-about-the-signing-of-an-agreement-in-mexico/
You might also like
Brazil Potash appoints Marcelo Lessa to advisory board
Brazil Potash Corp. has announced the appointment of Marcelo Lessa to its advisory board.
