Matrix Fertilisers and Chemicals' Fertiliser Complex, India

Matrix Group (Matrix) is establishing a new fertiliser complex in Panagarh Industrial Park, part of the Burdwan district of West Bengal State, India. It will be owned and operated by the group's subsidiary, Matrix Fertilisers and Chemicals (MFCL).

The project is estimated to cost INR 50bn ($1.1bn). The lead banker and syndicator for the project financing is IDBI Bank.

The integrated ammonia-urea complex will have a capacity to produce three million ton per annum (mtpa). Construction is expected to begin in 2011. The work is scheduled for completion in 2012.

Matrix fertiliser complex design

The fertiliser complex will be built on a greenfield site of about 419-acre area. It will consist of single stream single integrated ammonia and urea plants. It will produce 3,850 metric tons a day (tpd) of urea and 2,200tpd of ammonia.

It will include a feedstock gas receiving station, product storage, instrument air and plant air systems. It will also include a dedicated water reservoir, a 33MW power plant, steam generation, water storage and wastewater recycling facilities, utilities, offsite and other associated facilities.

The complex will be built to meet all the safety, health and environmental standards. The surrounding land will be developed with a green belt.

Feedstock used for the new fertiliser complex

"The project is estimated to cost INR 50bn ($1.1bn)."

The complex will be the first of its kind in the country to exclusively use coal bed methane (CBM) gas as feedstock.

Essar Oil will supply the gas for 20 years from its Raniganj CBM block in West Bengal. The company started gas production at the block in January 2011.

Background to the project

The Panagarh site near Durgapur has established infrastructure and is close to the Damodar river water source. The complex is also close to the feedstock resources and the Kolkata and Haldia ports, supporting logistics.

It is strategically connected to the Eastern Railway and National Highway-2 road networks, easing the product distribution.

The fertiliser complex is expected to create several direct and indirect jobs and increase agricultural productivity in the region. It will serve key markets in Eastern India, including the West Bengal, Orissa, Eastern Uttar Pradesh, Jharkhand and Bihar states which have an annual demand of about two million tons. MFCL will produce and distribute the urea in time to market in a cost effective manner.

The local production will decrease the foreign exchange due to urea imports. It will also decrease the subsidy costs borne by the Indian government.

Engineering, procurement and construction of the India fertiliser complex

West Bengal Industrial Development Corporation (WBIDC) has allocated the land for the project. MFCL awarded the engineering, procurement, construction (EPC) and erection contract of the fertiliser complex to Engineering Projects India Limited (EPIL). All the contracts for utility packages and equipments have been ordered. The topography survey and soil testing at the site have been completed.

All the key approvals, including the environmental clearance, for the construction of the complex were in place by August 2011.

KBR and Saipem have provided the basic engineering for the project. Projects & Development India Limited (PDIL) and Saipem Chennai are currently completing the detailed engineering.

Technology incorporated into the new fertiliser complex in Panagarh Industrial Park

The ammonia plant will be based on the energy-efficient and purifier process technology of US-based company Kellogg Brown & Root (KBR). Saipem of Italy will supply its proprietary Snamprogetti process technology for the urea plant.

Contractors involved in the process

Several international companies have been involved in the basic and detailed engineering, procurement, construction and commissioning of the fertiliser complex.

"Construction is expected to begin in 2011."

The critical equipment suppliers for the complex include Mitsubishi Corporation's Energy & Chemical Projects Unit and Ebara Corporation of Japan; Cryostar of France; UHDE and Larsen & Toubro of India; Schmidt + Clemens and Linde of Germany; and Italian companies Boldrocchi and Villa & Bonaldi.