Ammonia And Urea Plant in Bolivia to Resume Operation

Bolivia’s publicly owned company, Yacimientos Petrolifos Fiscales Bolivianos (YPFB), has decided to resume operation of its Ammonia and Urea plant soon, after a 21-month shutdown period. The shutdown was brought into force following the damage caused by the mishandling of the plant equipment by unqualified personnel. 

Post-resumption, the YPFB plant will be running at 70% capacity utilization, resulting in the production of 1470 tons of urea per day and up to 44,000 tons of urea by the end of September. Continuing with the proposed operational rate of 70%, the company is targeting to generate monthly revenue of USD 22 million. With the recommencement of this plant, the company has also created job opportunities, having hired 500 employees out of which 48% are those who had been laid off earlier.

Urea is the most widely used nitrogenous fertilizer due to its rich nitrogen content (46%). Besides its extensive usage in the agricultural sector, urea is also used as a feed supplement for livestock to offset some of the protein needs. In industries, urea is majorly used to produce plastics, adhesives and resins. Urea held a global market size of 187.8 million tonnes in 2020 which is expected to grow with a CAGR of over 2% in the coming 5 years owing to its improving demand post-COVID19 period.

As per ChemAnalyst, the urea plant operation at YPFB marks a significant step in strengthening the economy of Bolivia. YPFB plans to sell 7% of the produced urea to the domestic market, while the remaining 93% will be traded in the foreign market. This strategy will aid in reducing the country’s imports of fertilizers, and also reduce their prices in the domestic market, eventually benefitting Bolivia’s agricultural producers to a large extent. However, regaining its credibility in the national and international market remains a challenge that YPFB will have to overcome with its good quality products and efficient services.