Norwegian fertiliser maker Yara said on Friday that it is curtailing ammonia output in Europe due to surging natural gas prices. The company said its ammonia production would be reduced to 40% of its 4.9 million tons/year European total capacity by this week. Yara’s output cuts are expected to have ripple effects even though Europe can still import ammonia from other regions. Previously, fellow fertiliser producer CF Industries Holdings also said it is suspending production in two British plants for the same reason.
Natural gas prices at the Dutch TTF hub have more than tripled this year to a record level on Thursday. Norwegian oil and gas producer Equinor expects prices to remain elevated through the upcoming autumn and winter. High energy prices are forcing European governments to intervene to keep factories running and houses warm.
