"Feasibility of Production of Ammonia and its Derivatives with Camisea Gas in Peru, [Factibilidad de la producción de amoníaco y sus derivados utilizando gas de Camisea en el Perú]"

Abstract

"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 total power demand of 67.46 MW, partially supplied through cogeneration and external electricity supply. 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. © 2026 Latin American and Caribbean Consortium of Engineering Institutions. All rights reserved."