Koch Nitrogen to Begin Construction on $1.3 Billion Expansion Project

The investment will increase urea and ammonia production capacity by more than 1 million tons per year and include a new urea plant, on-site water processing capability and multiple process improvements.

Koch Nitrogen to Begin Construction on $1.3 Billion Expansion Project

August 6, 2014

Koch Nitrogen Company, LLC will begin construction in mid-September on a previouslyannounced $1.3 billion expansion project at its Enid, Oklahoma facility. The project will be implemented over the next three years and will increase production capacity by more than 1 million tons per year.

The expansion project is comprised of a number of projects, including:

  • Construction of a 900,000 ton-per-year urea plant.
  • Efficiency improvements and capacity increases to existing ammonia plants.
  • Added capability to produce high-purity urea to serve the diesel exhaust fluid (DEF) market.
  • Construction of high-speed truck and rail loading facilities, complementing the existing access of the Burlington Northern and Union Pacific railroads.
  • Construction of an additional 90,000 tons of urea storage capacity.
  • Construction of infrastructure to process water discharged from the city of Enid’s wastewater treatment plant, substantially reducing the facility’s use of drinking water.
  • Construction of an electric power substation to supply new power and improve the reliability of existing power to the facility.

“This investment by Koch Nitrogen is one of the largest construction projects in the history of Koch Industries,” said David Robertson, president and chief operating officer of Koch Industries, Inc. “It reflects the ongoing growth of our fertilizer business and underscores our commitment to innovation and creating long-term value.”

The project will employ up to 1,000 contractors during the 18-24 months of construction. In addition, 50-60 permanent employees will be added to support the expanded facilities.

“These improvements and additions to our Enid facility will significantly enhance our current operations and allow us to meet our customers’ needs in a more efficient and effective manner,” said Chase Koch, president, Koch Fertilizer, LLC. “We appreciate our positive working relationship with the State of Oklahoma, the Garfield County Board of Commissioners, the Enid Regional Development Alliance and the city of Enid. We are looking forward to breaking ground on this important investment.”

The following companies are participating in the project:

  • Black & Veatch, a global engineering, consulting and construction company, is providing project planning, engineering and procurement services.
  • KBR, a global engineering, construction and services company, has been selected to provide urea engineering and procurement services and overall construction management.
  • Stamicarbon, the global market leader in licensing of urea technology and services, is providing the urea synthesis and granulation technology.

Enid Facility

The Koch Nitrogen facility in Enid is one of the largest fertilizer production plants in North America, producing ammonia, UAN (liquid fertilizer) and granular urea. It was built in 1974 and purchased by Koch Nitrogen in 2003. The site currently employs more than 150 people in the fields of engineering, operations and maintenance.

Operations Excellence

At the facility in Enid and at all Koch Nitrogen facilities, employees are committed to a safe work environment and strive to manage operations in a manner that protects the health and safety of employees, customers, contractors, the public and the environment. The fertilizer industry is highly regulated and Koch Nitrogen works with numerous federal, state and local regulatory agencies to maintain compliance with all laws and regulations at all times.