Chinese eyeing Bolivia petchem expansion plan

The Bolivian government’s second call to expand the Bulo Bulo ammonia and urea complex in Cochabamba department has drawn interest from at least 10 groups, three of which hail from China.

The US$36mn project for state hydrocarbons company YPFB entails the installation of a urea formaldehyde concentrate (UFC) plant to produce 20t/d of the thermosetting synthetic resin.

Among the potential bidders are China Machinery Engineering (CMEC), East China Engineering Science and Technology (ECEC) and Sumec, a subsidiary of China National Machinery Industry (Sinomach). Sumec participated in the original process.

In April, the two countries signed a memorandum of understanding in Beijing (pictured) to strengthen investment and economic cooperation.

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Other tender inquiries have come from Isiven, Notore, Planck, Sacyr Fluor, Sepcon, Y&V Ingeniería y Construcción and Vepica, some of which also submitted bids in the previous call.

Offers in the new tender are due on August 12 and a process is underway to supervise the work.

YPFB's Bulo Bulo plans also include incorporating a US$20mn methanol plant as well as units for ammonia nitrate; nitrogen, phosphorous and potassium; and monoammonium and diammonium phosphate.

NEW DEAL

In a related note, YPFB reported that it closed agreements of intent with Paraguayan firms for the sale of 60,000t of urea during a business expo in Asunción.

“As a result of such meetings, the intention to commercialize 25,000t of urea was agreed with the company Los Palmares, to be delivered in November this year. While for 2020, a sales volume of 35,000t is expected to be delivered during the months of June and July,” said Xavier Eduardo Barriga, commercialization director of derived and industrialized products at YPFB.

The official highlighted that Paraguay was the largest user of fertilizers in the region in 2017 at 397kg/ha, and that the country’s harvested area that year was 5.6Mha compared with 2.5Mha for Bolivia.

This month, YPFB and Russian company Acron inked a deal to commercialize urea in Brazil through joint venture Borus Fertilizers.

Meanwhile at home, the commercialization director said in recent days that the agriculture industry in Oruro department could consume 3,100t/year of urea.

According to YPFB, a 50kg bag of the locally produced fertilizer costs 180 bolivianos (US$26), versus 240-265 bolivianos for imported urea.