OSLO, NORWAY: Record high natural gas prices in Europe are impacting ammonia production margins, and as a result Yara International is curtailing production at a number of its plants.
Including optimization of on-going maintenance, Yara will by next week have curtailed around 40% of its European ammonia production capacity.
Yara will continue to monitor the situation, with the objective to keep supplying customers but curtailing production where necessary.
Natural gas prices have been racing higher and are now 99% higher year-to-date, on combination of supply concerns and rising demand.
Natural gas is expected to keep rising, and if there is an especially cold winter, Goldman Sachs analysts see the potential for another doubling of price.
The jump in prices will impact some consumers who use it for heat, and utilities and companies that use it in production processes.
Natural gas prices have doubled this year and are expected to continue to rise, resulting in larger winter heating bills for some consumers and higher costs for electric utilities.
In the futures market, the natural gas contract for October rose above $5 per one million British thermal units, or mmBtus, for the first time since February, 2014.
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting vision of a world without hunger and a planet respected, Yara pursues a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions.
Yara’s ambition is focused on growing a climate positive food future that creates value for customers, shareholders and society at large and delivers a more sustainable food value chain.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. It operates an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2020, Yara reported revenues of USD 11.6 billion.
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16 Sep, 4:00 pm GMT-4 ·Disclaimer