Conrad Enill, Trinidad and Tobago's minister of energy. - File

A US$1.7 billion ammonia, urea, ammonia nitrate, and melanine - or AUM - complex, due to be completed before the end of the year, is expected to spawn spin-off industries downstream the petrochemical value chain.

The ammonia plant, the first phase of the complex which began commercial operations last May, and is producing above 2,000 metric tonnes per day, will provide the feed stock for urea ammonium nitrate 32 solution (UAN 32) and melamine.

The integrated petrochemical complex will have the capacity to produce 1.48 million metric tonnes of UAN, used as a fertilizer for all crops, and 60,000 metric tonnes of melamine per year to use in the manufacture of resins, mouldings, laminates and furniture.

Methanol Holdings Trinidad Limited (MHTL), one of the largest methanol producers in the world with a total capacity of over four million metric tonnes annually from its five methanol plants, are the owners of the AUM complex.

Diversified operations

MHTL chairman Dr Euric Bobb said when the entire project is completed, it will enable the company to diversify its operations from a single commodity to a multi-product enterprise.

He called on domestic companies to exploit the opportunities based on UAN and melamine.

"The required investment is modest, therefore smaller companies can find a niche in or downstream from the petrochemical sector - for example, in the manufacture of resins, mouldings, laminates and furniture which can also create many new jobs," he said at the commissioning of the new ammonia plant last week.

Energy Minister Conrad Enill said the government policy position is that new industries must utilise natural gas resources for creating products further downstream in the petrochemical value chain.

In addition to ammonia-based derivative products, government is currently conducting evaluations on establishing a plastics-manufacturing industry.

"This allows us to move our energy sector beyond being only providers of raw materials to manufacturing - a goal that we've had for many years, and one that is key to our future developmental agenda," said Enill.

Turning his focus on the industry, Enill said like almost all other commodities, ammonia, methanol, urea, UAN and Melamine markets experienced declines in the last quarter of 2008 due to global economic conditions and prices are presently at low levels due to reduced demand.

"With rising commodity prices expected later this year and into 2010 from increasing economic activity and expected global recovery, we are well positioned to benefit from reawakened trade and to access available markets," he added.

Joseph Cassidy, chairman of German-based Proman Ag and member of the MHTL board said the ammonia plant was brought into commercial production despite numerous challenges experienced during construction.

"When construction began we faced rising raw material prices driven by strong demand in Asia. As Trinidad and Tobago was also experiencing a period of rapid growth, there was tremendous competition for contractors and skilled labour, resulting in an escalation of project costs and many threats to the project schedule," he said.

Proman is the main onshore construction contractor with direct responsibility for developing the ammonia plant and the rest of the AUM complex.

business@gleanerjm.com.