UPDATE 1-KBR in 2nd S.American ammonia plant deal this week

Thu Jun 24, 2010 5:15pm EDT

* Brazil plant to produce 2,200 metric tons per day

* Argentina ammonia plant deal first in region for KBR

SAN FRANCISCO, June 24 (Reuters) - U.S. engineering company KBR Inc (KBR.N) has signed a contract for an ammonia plant in Brazil with state-owned oil company Petrobras (PETR4.SA), only three days after announcing a similar deal in Argentina.

Financial terms were not disclosed on either deal.

KBR, which says half the world's ammonia-producing capacity utilizes its technology, said on Thursday it will license its production process and provide basic engineering services as well as technical consulting for the project in Tres Lagoas.

On Monday, the Houston-based company said it had been awarded a contract to provide licensing and process design for an ammonia plant in Tierra Del Fuego, Argentina.

That plant, KBR's first in the region, is backed by a joint venture of China's Shaanxi Coal and Chemical Industry Group Co Ltd, Shaanxi Xinyida Investment Ltd and Jinduicheng Molybdenum Group Co Ltd, and will be the largest Chinese investment in Argentina.

The Tres Lagoas plant is expected to produce 2,200 metric tons per day, while Tierra Del Fuego will produce 1,500 tons daily. While the application of their output was not specified, ammonia is used extensively to produce fertilizer. (Reporting by Braden Reddall; Editing by Bernard Orr)

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