Spain’s Fertiberia urea, ammonia plants in Palos to remain shut on gas prices
Author: Jonathan Lopez
2021/10/25
LONDON (ICIS)--Fertiberia’s facilities in Palos de la Frontera producing ammonia and urea are to remain shut for another month on the back high natural gas prices, the Spanish fertilizers producer said.
The company also said it would restart production of ammonia and urea in its Puertollano, central Spain, facilities at 50% after a maintenance shutdown.
Fertiberia halted ammonia production in Palos, Huelva, south Spain, on 1 October on the back of high natural gas prices; gas is the key feedstock for ammonia production.
The facilities have the capacity to produce 400,000 tonnes/year of ammonia, 250,000 tonnes/year of urea, and 200,000 tonnes/year of urea ammonium nitrate (UAN).
Apart from high prices for natural gas as a feedstock for fertilizers production, the company also blamed high costs for electricity and carbon dioxide (CO2) emissions costs.
“Natural gas prices have risen 250% from May to October; compared with September in 2020, prices have risen by 580%. While the stoppage [at Palos Facilities] was expected to last one month, the shutdown has been extended to the end of November as the situation has not improved in past weeks,” said Fertiberia.
The company said it had been communicating with employees about the measure, which will not mean any employment adjustments, it added.
PUERTOLLANO TO PRODUCE AT 50%
While the Palos facilities are set to remain shut for at least another month, Fertiberia said it had concluded a maintenance shutdown at its facilities in Puertollano, which will produce ammonia and urea at 50% of its nameplate capacity.
Capital expenditure (capex) for the maintenance stood at €17m, the company said.
“The decision to restart production after the maintenance, even if only partially, has been taken with the aim of avoiding shortages in the market and faithfully comply with the commercial commitments signed with customers,” said Fertiberia.
“However, high prices for natural gas continue making very difficult the production of ammonia and urea.”
The Puertollano facilities have production capacities of 200,000 tonnes/year for ammonia, and 130,000 tonnes/year for urea.