Conference Agenda

The Peruvian fertilizer industry has historically relied on urea and ammonia derivative imports, despite having competitive advantages such as regulated natural gas prices and reserves from the Camisea fields. In that regard, this study assesses the technical and economic feasibility of producing ammonia and its derivatives locally to reduce import dependency and support the agricultural and mining sectors. Market analysis identified an average demand of 1,200 tpd of urea and 1,125 tpd (tonnes per day) of ammonium nitrate, justifying a 2,000 tpd ammonia plant using Steam Methane Reforming (SMR) for hydrogen production. Material and energy balances estimated a natural gas requirement of 70 MMSCFD and a power demand of 50 MW, with cogeneration to reduce grid dependency. Pisco-Paracas was selected for its access to pipelines and port infrastructure, optimizing logistics for domestic distribution and potential exports. Economic evaluation estimated a CAPEX of USD 1.6 billion, with competitive production costs compared to imports. Financial analysis showed viability under optimized gas pricing and financing structures. Sensitivity analysis confirmed that natural gas pricing is the main variable impacting financial outcomes, followed by CAPEX and product prices.