High natural gas prices force fertilizer maker to close plant

Knoxville, Tenn. (Platts)--2May2005

Sioux City, Iowa-based fertilizer maker Terra Industries Monday said high
natural gas prices have forced it to close operations indefinitely at its
Donaldsonville, Louisiana, ammonia plant. The plant has the capacity to use
some 17 Bcf/year of gas. "High, volatile natural gas prices make it
uneconomical to keep the Donaldsonville ammonia plant on standby," said
Michael Bennett, Terra's President and CEO. 

The plant last operated in December, and has been on standby since. It was
purchased in December as part of Terra's purchase of Mississippi Chemical's
nitrogen manufacturing business. The company said it would instead purchase
ammonia from another manufacturer and use the Donaldsonville facility for
storage and distribution. Terra also mothballed its Blytheville, Arkansas,
fertilizer plant in 2004 due to high and unstable natural gas prices.

This story was originally published in Platts Natural Gas Alert
http://www.naturalgasalert.platts.com

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