Leading fertilizer producer Terra Industries said effective Jan. 1, it will suspend ammonia production at its Yazoo City, MS, facility because of high natural gas costs. The closure is the second U.S. closure by Terra in the past month. In late November, it suspended all production at its Woodward, OK, facility for the same reason (see Daily GPI, Nov. 22).
The Sioux City, IA-based manufacturer said it will begin a maintenance turnaround in January that it had originally scheduled for February. It expects to resume ammonia production at the Yazoo City plant after the turnaround is completed, “and when natural gas costs decrease to a level that will allow the plant to operate with positive cash flow.” Terra plans to fulfill its Yazoo City sales commitments during the production suspension using imported ammonia to operate its upgrading plants.
Last month, Terra said it would suspend production at its Woodward facility as well as ammonia production at its Billingham, UK, plant. Terra continues to produce ammonia in Courtright, ON; Port Neal, IA; Verdigris, OK; and Severnside, UK, at reduced rates. Point Lisas Nitrogen Ltd. in Trinidad, in which Terra owns a 50% stake, continues to operate at full rates.
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