LSB Industries Inc., Oklahoma City, announced on Feb. 16 that on Feb. 12 it temporarily took its Pryor, Okla., nitrogen facility out of service as a result of the recent surge in natural gas prices that has taken place in the region due to extremely cold temperatures. Also related to the cold weather, the operator of the pipeline that supplies natural gas to the Pryor facility is experiencing significant weather-related gas supply impacts and, as a result, has curtailed gas distribution to commercial customers. LSB said it will restart production at Pryor as soon as natural gas prices and availability normalize.
LSB does not expect a material impact to its first-quarter 2021 financial results due to Pryor’s temporary shutdown. However, the company said the longer natural gas prices persist at the current elevated levels and/or gas availability remains constrained, the more significant the potential impact to the company’s financial results.