New U.S. Nitrogen Production is Obviating Imports

Green Markets and IHS Markit Conference Uncovers Nitrogen’s Future

May 1, 2017 (Keene, NH) -- Major producers of nitrogen products in North America are on an expansion tear.  A run up of prices in 2008 (and 2013), coincided with significantly lower input costs driven by shale gas. These dynamics drove over 30 new ammonia manufacturing projects in North America.

But with capital costs typically in excess of $1B, several years’ worth of engineering and construction, cost over-runs, delays, myriad legal and regulatory obstacles, not all will be successful to say the least.

Those that are, though, include companies such as CF Industries, EuroChem, Agrium, Dyno Nobel, Koch, Austin Powder, OCI Iowa Fertilizer, Phibro and a collaboration between Yara and BASF. The CF Industries projects alone will add over 2 million metric tons per year to North American output.

In total these online or high probability projects will eventually add 7.5 million metric tons of additional ammonia capacity in North America, driving imports down by almost 40% in 2018 and even more dramatically beyond.

Multiple projects have downstream upgrades earmarked for the ammonia, and the overarching story is one of increased availability of merchant nitrogen products in North America. New online capacity is already creating an impact; prices for Gulf urea bottomed out 30% lower than the previous year.

With this increased domestic capacity, nitrogen production in North America could approach ~20 million metric tons of ammonia, ~13.5 million metric tons of urea ammonium nitrate (UAN) and ~15 million metric tons of urea by 2020.

In this market context The NITROGEN NORTH AMERICA conference, co-produced by Green Markets and IHS Markit will be held on June 5 in Las Vegas.

The conference faculty and attendees will uncover the dramatic shifts taking place in the U.S. nitrogen products market.  Bringing together agricultural and industrial use, the event delivers expert insight into the future direction of critical nitrogen markets.

NITROGEN NORTH AMERICA also offers a half-day, preconference workshop on June 4: Monetizing Gas and Coal into Ammonia with Mark Wegenka, from IHS Markit. This intensive covers ammonia feedstocks, synthesis gas and ammonia production, and takes a deep exploration of the ammonia value chain.

NITROGEN NORTH AMERICA is all business, thought leadership and direction.  In addition to a unique learning opportunity, attendees will find ample and valuable networking with leaders across the nitrogen product value chain.

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