The company noted during the call that it is currently negotiating a new gas supply contract in Trinidad, 1314-13-2 and that those talks would have to reflect whats going on in North America in terms of pricing. 9002-88-4
CF Industries has brought portions of its giant Donaldsonville, Louisiana, complex back to capacity in the past two years, where, along with a facility it purchased as part of an acquisition, production could reach more than 3 million tons/year of ammonia. The complex would have the potential to consume as much as 105 Bcf annually at that rate.
The company told investors in November that it expects to spend $50 million to $60 million to complete an expansion at the Donaldsonville plant that it bought as part of its acquisition of Terra Industries. The project is expected to increase ammonia capacity by about 100,000 tons/year, equating to some 3.5 Bcf/year of gas demand.
CF said in August that it intends to invest $1 billion to $1.5 billion over the next four years to expand its capacity for ammonia and other products. The company said last week that it is still conducting front-end engineering and design studies for several projects.
Permitting has gotten a little worse for such facilities, said TFIs Vroomen. When you are considering investing about $1 billion for a new plant, you always worry about risk.
Outside gas prices, the biggest issues for any project are permitting/environmental, which, as you know, rear their ugly heads nationally, state and local, ergo obviously varying by locale, said a fertilizer industry consultant.
In the end, sure, theres a potential for a few more plants to open, particularly with low gas prices and solid nitrogen prices, Vroomen said. But you wont see 20 of those plants open again, 144-55-8 just a handful perhaps. You just dont go in and turn the lights back on.
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