Petcoke a priority, says CF, but no final decision

Long Grove, Ill.-CF Industries Inc. continues to study the possibility of running its Donaldsonville, La., nitrogen complex using petroleum coke gasification; to date, however, it has not pulled the trigger on that option. This according to CF spokesman Chuck Nekvasil last week, in response to rumors that CF would be involved in a $700 million petcoke facility in 2007 with The Energy Capital Group Inc., (ECG) Houston. “For the record, we continue to study this option, and it is a priority for us,” said Nekvasil, “but no decision to proceed has been made, and we have not established any timetable for such a decision.” ECG confirmed that it was in the midst of discussions that it intends will result in its building, owning, and operating gasification facilities in the chemical, petrochemical, and refining industries. However, it said the discussions are covered by confidentiality agreements that have prevented it from issuing press releases at this point. In the meantime CF, citing high run-up in equipment and construction expenses, says costs of building a greenfield ammonia and UAN complex in Trinidad can’t be justified. It has taken a step back from that project, but will continue to assess the project in light of an attractive natural gas contract. CF says it must be assured an attractive return before proceeding.