The world’s biggest ammonia trader Yara is bringing ammonia to Europe to support fertilizer capacity after wholesale gas prices soared.
The gas being brought into Europe originated from Yara’s production facilities in Trinidad, the US, and Australia which are running at full capacities.
The company has been prompted to slash ammonia output in Europe by 40% on the back of the surging gas prices which had made the production of ammonia in Europe unprofitable.
CEO Svein Tore Holsether commented, “Everything is moving up but at the moment the nitrogen prices in Europe are at a level that does not justify the production of ammonia.”
He ensures that the company was able to supply all of its customers with contracted volumes. However, he is unsure of how long the high gas prices would last in Europe.
He added that in the longer term, the company requires some policies regarding developing more renewable energy to make it more resilient. Yara will also need a more value-chain approach to the food system which is so fragmented.
Tags: AlwaysFree,English,Europe,GasPublished on September 21, 2021 10:35 AM (GMT+8)
Last Updated on September 21, 2021 10:35 AM (GMT+8)