• GE will upgrade 40 year old equipment at the nitrogen-based Pemex’s fertilizer facility formerly known as Agro-Nitrogenados facility;
• Delivery time will be significantly reduced with upgrading rather than replacing of tequipment;
• Facility will produce 1 million tons of Urea per year, meeting 75% of Mexico’s domestic demand.
GE Oil & Gas signed a contract with Avanzia Group to refurbish and upgrade four CO2 compression trains including all the auxiliaries and BOP (Balance of Plant) components of Mexico’s state-owned oil and gas company Petróleos Mexicanos’s (Pemex) nitrogen-based fertilizer facility. The newly restored plant will meet about 75% of Mexico’s domestic demand for Urea, revitalizing Mexico’s fertilizer production and dramatically reducing its reliance on imports.
The contract was firstly announced on Sept, 9th during the signature of a Memorandum of Understanding between GE and Pemex that sets the framework for GE and Pemex to work together on technological and financial solutions for gas compression, power generation and hydrocarbons production, onshore and offshore, including subsea and downstream.
This contract represents a successful example of the partnership between the two companies.
Avanzia Group, a subsidiary of ACS Group, is restarting the fertilizer facility that Pemex acquired in 2014 after 15 years of being mothballed.
GE will provide a full turnkey installation solution that renews its performance and efficiency. As the original equipment manufacturer, GE will be able to refurbish and upgrade ~40 year old existing compression trains, composed of centrifugal compressors driven by steam turbines, rather than replacing them. As part of the facility modernization plan this option can significantly reduce delivery time, optimizing operators’ investments and quickly get the plant back in operation.
Girish Saligram, General Manager of Downstream Products and Services, GE Oil & Gas said: “This project with Pemex is a great example on how assets can be revitalized to extend their lives and bring production back to life. Upgrades are at the core of our services where we can embed new technology innovations at the existing site, maximizing performance and increasing plant profitability.”
Pemex’s fertilizer facility, located in Coatzacoalcos, Mexico, will produce approximately 1 million tons of Urea per year when the plant comes back on-line. The renewed efficiency will ensure high level performances equal to a new plant. Urea is the most nitrogen-concentrated fertilizer used by Mexican growers, importing 1.4 millon tons of this strategic feedstock every year.
Edgar Torres Garrido, Executive Advisor to Pemex CEO said: “Bringing back on-line this plant will significantly increase Mexico’s fertilizer capacity, reduce transport costs for Mexican farmers and benefit from lower gas prices. GE Oil & Gas’ expertise and service solutions were key to reducing the project time; doing so in such a complex environment is a notable achievement.”
Pemex (pemex.com) is the most important company in Mexico and one of the largest in Latin America, and the success of the company is reflected in its dedication to the future of Mexico. As the largest tax contributor to the Mexican government, the income Pemex generates, helps support all three levels of government: federal, state and municipal. Pemex directly and indirectly participate in the economic and social development of the country.
About GE Oil & Gas
GE Oil & Gas is inventing the next industrial era in the oil and gas sector. In our labs and factories, and in the field, we constantly push the boundaries of technology to solve today’s toughest operational & commercial challenges. We have the skills, knowledge and technical expertise to bring together the physical and digital worlds to fuel the future.