In this list
Natural Gas | Petrochemicals

Yara to cut fertilizer production at two European plants amid rising gas prices

Energy | LNG | Natural Gas | NGL

Platts LP Gaswire

Commodities | Energy | Energy Transition | LNG | Natural Gas | Natural Gas (European) | Oil | Crude Oil | Refined Products | Fuel Oil | Metals | Steel Raw Materials | Petrochemicals

Market Movers Europe, Sept 25-29: TotalEnergies to announce strategy update amid rising oil prices, Russia's fuel export ban

Oil | Energy Transition | Energy

APPEC 2024

Energy | Oil | Energy Transition | Natural Gas | Coal | Electric Power | Refined Products | Fuel Oil | Gasoline | Emissions | Carbon | Crude Oil | Renewables | Electricity

IEA softens call to halt new upsteam projects but sees faster fossil fuel peak

Petrochemicals

Platts European Methanol Assessments

Agriculture | Energy | Coal | Energy Transition | Renewables | Natural Gas

Commodity Tracker: 4 charts to watch this week

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

Yara to cut fertilizer production at two European plants amid rising gas prices

Highlights

Plants have total capacity of 1 mil mt of ammonia

Production costs rise on higher natural gas prices

  • Author
  • Jeffrey McDonald
  • Editor
  • Adithya Ram
  • Commodity
  • Natural Gas Petrochemicals

Global fertilizer giant Yara is cutting production at two European plants this week in response to soaring natural gas prices, the company said March 9.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Ammonia and urea production is expected to be at 45% capacity at its Ferrara and Le Havre plants in Italy and France, respectively, by the end of the week, the company said. The two plants have a combined annual capacity of 1 million mt ammonia and 900,000 mt urea.

"I was expecting this," a European ammonia trader said. "Others [are] to follow."

Dutch natural gas prices have risen over 1,100% from a year ago as S&P Global Commodity Insights assessed the Dutch TTF month ahead price at $67.925/MMBtu March 8, up from $5.622/MMBtu a year ago.

Natural gas is the predominant feedstock in ammonia production. Assuming current gas prices, production costs are estimated at $2,474/mt for ammonia, according to Yara's cost calculations.

S&P Global assessed the CFR Northwest Europe ammonia price at $1,400/mt March 8, based on an indication of value at $1,500/mt and rising cash costs. The assessment is the highest since S&P Global launched ammonia prices October 12, 2021.

The company said it would continue to monitor the situation and use its global production system to continue supplying customers. It would, however, cut production "where necessary due to challenging market conditions."