INEOs to end Lima operating agreement with PCS

Lima, Ohio-INEOS Nitriles announced April 10 that it has served notice of termination of its operating agreement with PCS Nitrogen Ohio, LP, effective Dec. 31, 2007. As of Jan. 1, 2008, PCS will assume operating responsibility for its nitrogen facility at Lima. The facility is currently operated by INEOS under an operating agreement with PCS. INEOS inherited the operating agreement when it purchased the chemical division of BP in 2005 and has operated the PCS facility since Dec. 16, 2005. INEOs said the decision was made in order to focus on the growth and optimization of its core operations at Lima. The Lima facility has the capacity to produce 1.37 million tons of ammonia, urea, nitrogen solutions, and nitric acid annually, and produced a total of 765,000 tons last year. PCS says it intends to continue operating this facility as market conditions dictate and is committed to effecting this change in operating responsibilities with no disruption in production or service to its customers. INEOS and PCS continue to each own approximately half of the Lima Chemicals complex, with each company taking responsibility for its own operations. “We welcome the opportunity to assume operating responsibility at our Lima facility and are anticipating a smooth transition,” said Tom Regan, PCS Nitrogen president.