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Our target placed to sale this product is in Malaysia. The population size of Malaysia is
almost 30 million people (based on 2015). The analysis of the world ammonia consumes
have been done by Potash Corp and it shows that South East Asia consumes 15% of ammonia
but the total they can produce is around 14% which is lesser than it consume.
The purpose of the production of ammonia is to increase the supply of ammonia in South
East Asia that the private market perceives as ready for development. It attempts to achieve
that purpose by identifying barriers to development and suggesting ways that public policy
and investment can remove those barriers. Ammonia is one of the highest demands around
the globe and it has been increasing approximately 2% throughout the years over the past
decade. Almost half of the world ammonia production is consumed to produce urea and more
than three quarters of it was used in production of upgraded fertilizers. As for the rest,
approximately 19% of ammonia was used for non-fertilizer production. Asia holds the largest
growth in industrial used.
The majority of new ammonia projects will be associated with downstream production
capacity such as urea or nitrogen solutions. Therefore, it is reasonable to assume that the
merchant ammonia market will maintain a firmer balance compared to urea markets.
7% 4%
8%
Urea Non Fertelizer Other Fertelizer Ammoium Nitrate DAP/MAP Direct Application
48%
14%
19%
Million Tonnes
200
180
160
140
120
100
80
60
40
20
0
2004 2005 2006 2007 2009 2010 2011 2012 2013 2014
Year
Million Tonnes
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Ammonia liquid is much easier to be transport worldwide. Therefore, the ammonia produce
is in liquid state plus urea is the most fertilizer consumption compared to others fertilizer. As
the data shown above, South East Asia relies heavily on urea trade and purchases its
requirements via large tenders that can reach almost 1 million tonnes each. They supplied
approximately 18% of the world urea production which is lesser than the global trade is 24%.
Most of these countries have approximately 80% of global trade but most of them are facing
supply constraints including South East Asia. For this reason we decide to produce ammonia
liquid in this region to overcome the problem.
= RM1271.60 x 110
= RM 139,876
Years
2015
2016
2017
28,678.6
29,252.17
29,837.21
RM 1,271.60
RM 1,297.03
RM 1,322.97
RM 36.47 million
RM 37.94 million
RM 39.47 million
The production ammonia operation is continuously for 5 days per week and the total
ammonia liquid produce is 110 metric ton per day which will lead to 40,150 metric ton per
annum (mtpa) produces for year 2015 and the production is estimated to be increase for the
following year by an average at 2% per annum. The Petroliam Nasional Berhad
(PETRONAS) (20076-k) staded that in Malaysia, petrochemical plant that produces ammonia
and urea is in Gurun, Kedah and Bintulu, Sarawak which is 683,000 mtpa and 740,000 mtpa
respectively. Ammonia was trading at $310(RM1271.60) per metric ton as of the week
ending 4 March 2016 based on the Mosaic Company weekly Ammonia Spot Price Graph and
the prices are estimated to be increase approximate by 2% anually due to increase of natural
gas price.