KBR Chosen To Design, Build And Operate Ammonia Plant In Egypt

Houston - KBR, the engineering, construction and services subsidiary of Halliburton, announced that it has been selected to build and operate Egypt Basic Industries Corporation's (EBIC) new ammonia plant using the company's proprietary ammonia technology, KAAP (KBR Advanced Ammonia Process). KBR will provide engineering, procurement and construction (EPC) and operation and maintenance (O&M) services to the 2,000 metric ton per day (mtpd) export-focused greenfield ammonia plant, to be located in Ain Sokhna, Egypt.

KBR's proprietary KAAP technology comprises a catalyst of ruthenium on a stable graphite carbon support, with an activity up to 20 times higher than traditional iron-magnetite catalyst. As a result, synthesis loop pressure is lowered to about 90 bar, which equates to significant savings in capital cost and maintenance for the customer. Although KAAP is currently used at several 1,850 mtpd ammonia plants in the Caribbean, the 2,000 mtpd EBIC project represents the largest commercial application of this technology since its introduction to the market in 1992, and the first in Egypt.

"KBR has been on the leading edge of ammonia plant technology for more than 60 years," said Lou Pucher, senior vice president, KBR Energy and Chemicals. "The company has licensed more than 200 ammonia plants since 1943, and our exclusive Advanced Ammonia Process technology positions the plant owner as a low-cost producer in the highly competitive ammonia business."

EPC work began in the first quarter of 2006, with completion of the facility due in the second half of 2008. Natural gas for the project will be purchased from the Egyptian General Petroleum Company (EGPC) and used as a feedstock to produce ammonia using the KAAP technology. The ammonia will, in turn, be purchased by Transammonia and exported by ship from the adjacent Sokhna Port facility. KBR will operate and maintain the plant for EBIC for up to 15 years.

KBR co-developed the project and will be one of the shareholders in EBIC along with Orascom Construction Industries, PSK Holdings, Egypt's General Petroleum Corporation, Sokhna Port and several private investors. The Export-Import Bank of the United States has provided its guarantees for two-thirds of the project financing, which is provided by five international banks.

SOURCE: Halliburton