Agrium to continue operation of Kenai, Alaska nitrogen facility in 2007
Agrium Inc. has successfully obtained sufficient natural gas supplies to allow for the operation of its Kenai nitrogen facility in 2007. Agrium expects that the nitrogen plant will experience an extended shutdown during the winter months due to seasonally higher demand for home heating.
The extension is not expected to impact Agrium's guidance for the second half of the year and is anticipated to provide only a modest contribution to earnings in 2007. This is due to a lower anticipated operating rate and higher average gas price than in 2006. The commercial gas contracts are with numerous Cook Inlet gas producers and are subject to strict confidentiality provisions.
The facility is expected to operate at about 75 percent of capacity over the next 12 months, operating one ammonia and one urea plant. Annual urea capacity is 640,000 thousand tonnes and net ammonia capacity would be approximately 280,000 thousand tonnes if the single-train ammonia and urea plants both operated at full rates.
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