August 14 ,2022
– to include Port for shipbuilding & repairs, wood processing facility
By Kiana Wilburg
Kaieteur News – Chemtech International, a major US manufacturing firm for a broad spectrum of markets since 1984, is poised to set up a massive US$200M oil refinery and Integrated Post Petrochemical Manufacturing Complex in Guyana following approval from the Environmental Protection Agency (EPA).
The project is expected to allow for a port for shipbuilding as well as a special facility for wood processing.
According to the company, it already has a letter from the Guyana Office for Investment (Go-Invest) to establish the complex which will be located at Plantation York, East Bank Demerara comprising 492 acres of land with a waterfront of approximately 4000 feet being 80 km from Georgetown and 20 km from Linden. Financing is expected from the United Securities Trust of Switzerland.
According to project documents before the environmental regulator, Chemtech has a special purpose branch registered in Guyana through which it proposes to establish an integrated chemical complex. Kaieteur News understands that this is just the first phase of the development while the second will entail a port for shipbuilding and repairs, specifically to service the onshore and offshore oil and gas industry. This project upon completion of these two phases is expected to create over 300 permanent jobs and 1,000 during construction.
As for the design for the Integrated Complex, the company said it does not require natural gas. All the products it needs, with the exception of wood, will be imported and processed in a set of modular plants.
The Integrated Chemical Complex will process Methanol into five by-products: Formalin, ParaFormaldehyde, Phenol Formaldehyde, Urea Formaldehyde and Urea Melamine Formaldehyde. Those will then be used to produce Oriented Strand Board (OSB), Veneer board, NPK (Nitrogen, Potash, and Potassium) fertiliser, and Sulfur Coated Urea (SCU) slow-release fertiliser.
The integrated complex is expected to be a pioneer in processing first-stage downstream products (Methanol, Urea, Melamine, etc.) to marketable items which are in global demand and can generate significant foreign exchange and employment for the country. As a result of the aforementioned, the complex will be adding value to the natural resources of the country and placing Guyana in a position where it will be producing world-class products for international markets.
SIX PLANTS
The facility which will be at Plantation York will house six processing plants.
The Formalin Plant will have a capacity to produce up to 55,000 Tons Per Year (TPY). The company said it is feasible to import the Methanol to process since the quantity required by the market is very small. (Formalin according to research is an industrial disinfectant, and as a preservative in funeral homes and medical labs. It can also be used as a preservative in some foods and in products, such as antiseptics, medicines, and cosmetics.)
Kaieteur News understands that the Para Formaldehyde plant capacity will stand at 10,000 Tons Per Year (TPY). Para Formaldehyde is a chemical that can be used in disinfectants, and as a hardening and waterproofing agent. It is also used to prepare adhesives, resins and in dentistry as an antiseptic.
As for the Sulfur Coated Urea plant capacity, it is expected to be around 100,000 Tons Per Year (TPY). The Urea will be imported in specialised containers. At this time, Chemtech said it is feasible to import the urea because the quantity required is very small until a Urea plant is built to supply the local requirements. For those who may not be aware, Sulfur Coated Urea is an economical slow-release fertiliser produced by coating a urea granular with Sulfur and wax.
As for the NPK (Nitrogen, Potash and Potassium) Plant capacity, it is expected to be 66,000 Tons. It will utilise products from the Sulfur Coated Urea Plant. Chemtech said it intends to also import 20,000 Tons of phosphorous and 20,000 tons of potash to manufacture the NPK which represents primary nutrients in commercial fertilisers.
With respect to the Veneer Board plant, Chemtec said this will produce 18,155 Cubic metres of wood per annum. The plant will utilise the products from the Fomalin plant.
The Oriented Strand Board plant will process 80,000 Cubic Metres of wood Per Annum and will utilise the products from the Formalin plant. Chemtech was keen to note that it will be purchasing wood locally to support these two value-added plants.
When the Gas-to-Shore project comes on stream and methanol and Urea plants are built, Chemtech said it will be happy to purchase from the local plant.
Chemtech also noted its intention to build a 20,000-square feet Fabrication shop to support the construction of the facility and for the maintenance of the proposed plants.
The Fabrication Shop is expected to consist of a Machine shop, Welding and Fabrication, Electrical shop and specialised equipment for building Tanks, High Pressure Certified Vessels. This facility will have the capability of supporting the Oil and Gas sector too.
Kaieteur News understands that this project will have work for the Fabrication facility for a minimum of two years. The second phase which entails the establishment of the port is expected to create another three years of work for the said facility.
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