All posts by mickeybarb@charter.net

New Mexico Investigates Groundwater Contamination from Mosaic’s Potash Mining

News, News Briefs, Potash, Southwest

The New Mexico Environment Department (NMED) reported on April 15 that it is reviewing a Stage 1 Abatement Plan (Plan) to investigate and define the extent of groundwater contamination from discharges associated with potash mining.

Groundwater contamination between Laguna Grande, a naturally occurring salt lake, and the Pecos River has been detected in groundwater monitoring wells. As a result, NMED required Mosaic Potash Carlsbad to submit the Plan to characterize the nature and extent of groundwater contamination from mine discharges between Laguna Grande and the Pecos River.

Mosaic operates a potash mine located approximately 16 miles east of Carlsbad in Eddy County, N.M. The mine includes both an underground potash mine and surface mill that produces potash products. The mill produces potash tailings that are discharged to an onsite salt stack, where coarse salt and clay settle.

Under normal operating conditions, brine water and residual clay flow off the stack and discharge to a clay settling pond. The brine water in the pond is discharged through a brine pipeline to the northern end of Laguna Grande. The brine in Laguna Grande is diverted into a series of evaporation cells operated by United Salt and New Mexico Salt for chloride salt harvesting.

NMED approved the first discharge plan and issued the first discharge permit (DP-1399) for Mosaic in 2004, with subsequent renewal in 2011. DP-1399 is currently in effect and addresses all site discharges. It is in the process of being renewed.

The Plan includes a summary of site conditions, including site history and previously conducted investigations, and proposes steps to define the nature and extent of groundwater contamination. NMED will review the Plan and either approve it or send Mosaic a Notification of Deficiency within 60 days.

Once Mosaic completes the site characterization and NMED approves the Final Site Characterization Report, NMED may require a Stage 2 Abatement Plan that outlines strategies to clean up the groundwater contamination.

Zenith Minerals Secures Potash Exploration Licenses in Western Australia

Australia, Lithium, News, News Briefs, Potash

Junior lithium development company Zenith Minerals, West Perth, Western Australia, on April 25 reported a new Yalgoo potash brine project in Western Australia, with the company securing three 100 percent owned exploration licenses.

“Whilst assessing regional government geophysical data on our Waratah Well lithium project, the technical team identified a very large potash brine target located southeast of Yalgoo, adjacent to the main Mt. Magnet/Geraldton Road,” said Zenith Managing Director Mick Clifford.

“If drill testing is successful in confirming the presence of sub-surface potash rich brines, then this project has a potential major logistical advantage over competitor projects being located only 250 kilometers from the port of Geraldton,” he continued. “Most competitor Western Australian potash brine projects are located hundreds of kilometers from port facilities, with the transport of potash product to coastal port being a significant component of the total operating costs of these projects.”

However, Zenith said it was developed as a pure lithium company and that it plans to eventually demerge any non-lithium projects, including potash, base metals, and gold, into one or more new companies to be listed on the Australian Stock Exchange.

LSB to Produce Blue Ammonia at El Dorado

Blue Ammonia, Carbon Dioxide, Featured, News, Southern Plains

LSB Industries Inc., Oklahoma City, said on April 28 that it has entered into an agreement with Lapis Energy, Dallas, to develop a project to capture and permanently sequester CO2 at LSB’s El Dorado, Ark. facility.

The project will commence immediately, subject to the approval of a Class VI permit, with expected completion by 2025. The sequestration will enable LSB to produce over 375,000 mt/y of blue ammonia.

“We are very excited to partner with Lapis and take our first step to becoming a supplier of low carbon or blue ammonia – allowing us to participate in what we believe will become a large future market,” said Mark Behrman, LSB President and CEO. “This project is very compelling for us from both environmental and commercial perspectives.

“Carbon sequestration is a proven means of reducing greenhouse gas emissions from ammonia production, and our El Dorado facility is uniquely located above deep geological formations with the capacity to sequester decades of CO2 production from the plant,” he said. “Our customers, particularly our industrial customers, need solutions to help them decarbonize their supply chains, and low carbon feedstocks represent an attractive opportunity to accomplish this goal in the near-term, while technologies for more sustainable no carbon or green ammonia production continue to become economical.”

Lapis, backed by Cresta Fund Management, a Dallas-based middle-market infrastructure investment firm, will make 100 percent of the capital investment required for the project development. LSB said this is the first carbon capture and sequestration (CCS) project announced in the state of Arkansas, and the third CCS project from ammonia production in the U.S.

Lapis, founded in 2020 by a team of industry experts, is a vertically integrated energy infrastructure development firm focused entirely on decarbonization through CCS.

Once operational, the project at the El Dorado site will initially capture and permanently sequester more than 450,000 mt/y of CO2 in underground saline aquifers, with the potential to increase this quantity based on potential debottlenecking projects at the facility. This will be equivalent to permanently removing approximately 109,000 passenger cars from the road, which represents approximately 11 percent of the cars registered in Arkansas.

The permanently sequestered CO2generated from the facility’s ammonia production is expected to qualify for federal tax credits under Internal Revenue Code Section 45Q, which are currently $50/mt of CO2captured beginning in 2026, but under evaluation by Congress to increase the 45Q tax credit to $85/mt of CO2.

Once in operation, the sequestered CO2 will reduce LSB’s scope 1 GHG emissions by 25 percent from current levels.

“Lapis is the perfect partner for us in our initial low carbon ammonia project given their significant experience and knowledge in the clean energy space,” added Behrman. “We are pleased to be working with them as we begin what we expect to be the first of several projects that will position LSB as a leader in the decarbonization of hydrogen and ammonia and generate significant long-term value for our shareholders.”

AgVend – Management Brief

Management Briefs, Texas

Agricultural e-commerce business AgVend, Austin, Texas, on April 27 announced the appointment of Tracy Linbo as Chief Commercial Officer. Under her leadership, AgVend said its Business Development team will build new, and support existing, third-party AgVend Ecosystem partners and new business applications, including the digital connectivity of the varied players across the agricultural supply chain. She will also lead AgVend’s People Operations group, which includes leadership development and recruiting.

Linbo has been on AgVend’s Strategic Advisory Board since 2020. Previously, she served as CCO at Growers Edge. Prior to that, she held the title of Senior Vice President of Agronomy, Communications, and Marketing at Agtegra Cooperative in Aberdeen, S.D. Throughout her nearly 30-year career in agriculture, she has also held positions in sales, product strategy, business planning, and strategic marketing, including Director of Strategic Planning at DuPont Pioneer.

“Tracy has been an invaluable advisor to our executive team as we navigated AgVend’s rapid growth over these past two years,” said AgVend CEO Alexander Reichert. “As we look to what’s next for the company, Tracy’s knowledge and experience will be crucial in building a digitally enabled future for our industry, one that is more resilient and prepared for the challenges of tomorrow.”

Anuvia Plant Nutrients – Management Brief

Florida, Management Briefs, Specialty

Anuvia Plant Nutrients, Winter Garden, Fla., announced that Lynn White, Founder and Managing Director of the Twemlow Group, will become Chairman of Anuvia’s Board of Directors. New board members include Cynthia Kueppers, Managing Director, Riverstone Holdings LLC, and Mark Gudiksen, Managing Partner, Piva Capital. Stepping down from the board are Rich Mack and Bill Buckner.

Riverstone Holdings is an asset management firm that invests in the private markets, primarily within energy, power, infrastructure, and decarbonization. Piva Capital is a San Francisco-based venture capital firm. Both firms led a recent $65.5 million round in Series D funding for Anuvia, which the company said it will use to finance increased production capacity and expand the commercialization of its SymTRX™ XP line of bio-based fertilizers for large-scale agriculture.

Fertoz Ltd. – Management Brief

Australia, Management Briefs, Specialty

Daniel Gleeson has been named CEO of Australian-based organic fertilizer producer Fertoz Ltd. He is a former Syngenta Global Marketing Director, with more 20 years of experience in the agribusiness sector. Executive Chairman Pat Avery will continue to focus on Fertoz operations, logistics, and phosphate production.

Prior to his three years with Syngenta, Gleeson held several executive positions with Limagrain, an international agricultural cooperative group based in France that specializes in field and vegetable seeds, and cereal products.

Anuvia Raises $65.5 M in Funding

Featured, Florida, News, Specialty

Anuvia Plant Nutrients, Winter Garden, Fla., announced on April 25 that it has raised $65.5 million in Series D funding, which it will use to finance increased production capacity and expand the commercialization of its SymTRX™ XP line of bio-based fertilizers for large-scale agriculture.

The funding was co-led by Riverstone Holdings LLC and Piva Capital. Also joining the Series D round were Morgan Stanley Investment Management, LK Advisers Limited (Mittal Family Office), along with existing investor Pontifax Global Food and Agriculture Technology Fund.

“With consumers, regulators, and the public pushing for more sustainable food production methods, Anuvia is focused on rapidly increasing manufacturing capacity of our field-ready bio-based plant nutrient system,” said Amy Yoder, Anuvia CEO. “Anuvia’s production is entirely U.S. based, ensuring supply-chain security for North American growers.”

Anuvia has a ten-year lease of The Mosaic Co.’s Plant City, Fla., manufacturing facility (GM Sept. 27, 2019). Following a recent expansion, Anuvia said the Plant City facility now has the capacity to expand to 1.2 million tons per year of high-efficiency, sustainable fertilizers for the agriculture, turf, and lawn care industries. The company said this is enough to service more than 20 million acres of agricultural crops and meet the growing demand for sustainable products.

“We believe Anuvia occupies a unique niche in the fertilizer value chain by delivering a sustainable product that decarbonizes existing on-farm practices while improving yields at attractive ROIs for row crop growers,” said Cynthia Kueppers, Managing Director at Riverstone Holdings. “Through its waste-to-value production process and reduced reliance on traditional nutrition derived from fossil fuels, Anuvia is positioned to become a key player in transitioning the industry to more sustainable growing practices.”

Anuvia said an environmental audit conducted by Environmental Resources Management (ERM) found that for every million acres of crops that use Anuvia’s products, the reduction of greenhouse gases is the equivalent of removing up to 30,000 cars from the roads.

“From shortages in food production due to rising energy prices coupled with the recent dramatic fall-off in supply availability of fertilizer, there has never been a greater need for sustainable bio-based fertilizers like Anuvia’s,” said Mark Gudiksen, Managing Partner at Piva Capital. “The company not only has the ability to scale world-class manufacturing capacity that can help farmers produce crops that reduce greenhouse gasses, but it can also do so at a scale and speed that will help address the challenges facing global fertilizer supply.”

Yara 1Q EBITDA Beats Estimates; Higher Prices Offset Higher Costs, Lower Deliveries

Ammonia, DAP/MAP, Earnings, News, NPK, Scandinavia, SSP, UAN, Urea

Yara International ASA, Oslo, reported a 130 percent increase in first-quarter EBITDA excluding special items to $1.35 billion, up from the year-earlier $585 million, beating analysts’ estimates after higher selling prices more than offset higher feedstock costs and lower deliveries.

First-quarter operating income surged to $1.04 billion, up from $322 million a year earlier. Net income attributable to shareholders of the parent company came in at $944 million ($3.71 per share), compared with the prior year $13 million ($0.05 per share).

Revenue was up 88 percent to $5.91 billion – missing analysts’ estimates – compared with the year-ago $3.14 billion.

Yara also benefited from a $223 million currency translation gain in the quarter compared with a $256 million currency translation loss a year earlier. Most of the gain originated from U.S. dollar denominated debt as the U.S. dollar depreciated against the Brazilian real and Norwegian Kroner, as well as other currencies.

Analysts had estimated Yara’s first-quarter adjusted EBITDA at $1.13 billion and net income at $608.1 billion (Bloomberg Consensus). Analysts had seen Yara’s first-quarter revenue at $6.01 billion (Bloomberg Consensus).

As a result of high gas prices, the company curtailed production at several of its European ammonia and urea facilities in early March (GM March 11, p. 1), but these have resumed production as the margin situation improved, Yara said in its April 27 results statement.

“While raw material price increases in isolation are negative for the company, higher end product prices create offsetting positive effects, as higher grain prices improve farmers’ profitability and demand incentives for agricultural inputs,” said Yara.

Yara’s first-quarter ammonia production was 4 percent lower year-over-year, at 1.72 million mt versus 1.79 million mt. The company produced 7.26 million mt of ammonia in full-year 2021.The company noted reliability issues in some sites offset improvements in others.

“But right now, the main focus for us has been to run our plants optimally financially rather than production-wise,“ Yara President and CEO Svein Tore Holsether told participants at a company earnings call on April 27.

Production of finished fertilizers and industrial products, excluding bulk blends, in the first quarter was 6 percent lower, at 4.86 million mt versus the year-ago 5.16 million mt.

The company noted finished fertilizer production improved further in the first quarter, attributing this as mainly due to the Rio Grande fertilizers plant expansion in Rio Grande do Sul state, Brazil, now ramping up. The company said it is making good progress there towards its target of finished fertilizer production.

Yara Executive President and CFO Thor Giæver said energy prices had come in a bit lower than what earnings call participants would have been able to calculate based on Yara guidance and sensitivities.

“This is mainly due to the fact that we have utilized some opportunities to source feedstock at lower than European hub pricing and also some prices on the NBP hub [National Balancing Point] in the U.K. have been lower than normal, and we have an exposure to that as well,” he said.

Based on current forward markets for natural gas and assuming stable gas purchase volumes, Yara expects its gas cost for the second and third quarters will be respectively $1.15 billion and $750 million higher than a year earlier.

Giæver clarified that the guidance for the second quarter is based on second quarter 2021 production volumes.

Turnarounds are scheduled at Tringen, Trinidad (expected impact around 30,000 mt of ammonia), and Belle Plaine, Sask. (expected impact around 120,000 mt of urea), in the second and third quarters.

The first quarter saw a decline in Yara’s delivery volumes compared with a year ago. Total deliveries fell by 8 percent, to 8.35 million from 9.08 million mt the previous year.

The company delivered 443,000 mt for ammonia trade in the quarter, compared with 458,000 mt in the same prior-year quarter.

Overall fertilizer deliveries were 11 percent lower than first-quarter 2021 at 6.10 million mt, down from 6.85 million mt, and premium products declined 14 percent.

Yara said the drop in fertilizers volume was mainly in Europe, where total deliveries were down 24 percent overall – to 2.23 million mt, but it noted it was from a relatively strong first quarter last year.

The company attributed the decline as due to high market prices, which, it said, have resulted in lower demand. It said in particular this has affected the NPK deliveries, which were down 36 percent year-over-year in the first quarter as European farmers have cut application of P and K.

Looking at the season to date in Europe, nitrogen deliveries so far in the 2021/2022 season are estimated to be 17 percent behind last year at the end of the first quarter, Yara said.

In Europe, EBITDA excluding special items in the first quarter was $154 million higher than a year earlier at $345 million, as higher prices more than offset increased feedstock costs and lower deliveries. Deliveries decreased 24 percent to 2.23 million mt, down from 2.92 million mt, which Yara attributed to mainly reflecting reduced demand and customers reluctant to take positions in the current price environment.

“In Europe, we have delivered significantly improved results despite our gas costs being more than four times higher than a year ago,” Giæver told earnings call participants.

“This is thanks to a flexible production and sourcing set-up, which has allowed us to continue operating and delivering essential products both for agriculture, transport, and industrial purposes,” he said.

On the lower first-quarter delivery volumes, mainly in Europe, Giæver noted “this may seem counterintuitive, as farm margins are better in Europe compared with several other regions.” But, he said, Europe is also where the market volatility, especially including gas prices, has been the highest, and “that volatility can reduce buyers’ willingness to take positions at least in the short term.”

The Americas’ first-quarter EBITDA excluding special items was $374 million higher than a year earlier, at $516 million, mainly driven by higher nitrogen prices but limited energy cost increase, leading to strong production margins. Underlying fixed costs increased 11 percent – partly due to inflationary pressure in Brazil – while total deliveries decreased 3 percent to 2.79 million mt, but with an increased share of premium products.

In Africa & Asia, EBITDA excluding special items in the first quarter was $80 million higher than a year earlier at $126 million, mainly reflecting improved production margins on ammonia. Total deliveries increased 3 percent to 1.08 million mt, driven by higher deliveries of commodity fertilizers in Asia, partly offset by lower premium products deliveries – particularly in China, where domestic prices are decoupled from global price dynamics.

Deliveries to industrial customers were marginally lower in the first quarter than a year ago, at 1.81 million mt versus 1.77 million mt, as Yara continued supplying what it described as “essential products” to a number of industrial uses, including transportation. Industrial Solutions EBITDA excluding special items in the first quarter came in $113 million up year-over-year, at $192 million.

Looking ahead, Yara noted industry consultant projections showing increased global nitrogen capacity growth in 2022. However, it sees a continued tight market driven by high grain prices, supply disruptions, and low global inventories.

“In Europe, nitrogen industry deliveries season to date in the 2021/22 season are estimated to be 17 percent behind a year earlier. Deliveries were slow in the first quarter and are likely to end behind last year for the season as a whole,” the company said.

“Although higher grain and oilseed prices provide stronger economic incentives for farmers, higher fertilizer prices have shifted optimum application rates somewhat lower.”

Commenting on Yara’s financial results, Citibank said Yara managed to react to the European gas disruption by raising prices quicker than seen earlier, Bloomberg reported.

The company regained the fourth-quarter lag in its order book, bolstering first-quarter performance, Bloomberg cited Citi analysts, including Mubasher Chaudhry, as writing.

According to the report, nitrogen is Citi’s favored nutrient due to the development outlook being tight and crop dynamics across the key regions of Europe and Latin America showing favorable farmer profitability in the coming period.

Paris-based Kepler Cheuvreux sees “a strengthened case” for very strong profitability going forward after Yara’s firm first-quarter earnings, Bloomberg reported.

Kepler analyst Magnus Rasmussen maintained a cautious view on volumes going forward, he said in a note to investors, but noted that Yara has proven ability to capitalize on the current market environment, as cited by the Bloomberg report.

Separately, Nordea Bank Danmark analysts Hans-Erik Jacobsen and Kristine Aasberg assume strong fundamentals are likely to prevail as severe supply limitations (due to a considerable reduction in Chinese exports and expectations of lower Russian exports) will keep the fertilizer market tight.

Demand in Europe has been weak this season, but Nordea considers this a temporary setback and expects farmers to adapt to a new, higher-volatility environment, according to a Bloomberg report.

Yara Production and Deliveries

‘000 mt 1Q-2022 1Q-2021
Production1    
Ammonia 1,723 1,792
Finished fertilizer and industrial products (excluding bulk blends)1 4,863 5,160
     
Yara Deliveries    
Ammonia trade 443 458
Fertilizer 6,102 6,854
Industrial product 1,805 1,767
Total deliveries 8,351 9,079

1 Including Yara share of production in equity-accounted investees, excluding Yara-produced blends

Yara Deliveries

‘000 mt 1Q-2022 1Q-2021
Crop Nutrition Deliveries    
Urea 1,378 1,369
Nitrate 1,361 1,592
NPK 2,078 2,449
CN 422 477
UAN 303 383
DAP/MAP/SSP 102 147
MOP/SOP 212 149
Other products 246 289
Total Crop Nutrition Deliveries 6,102 6,854
     
Europe Deliveries    
Urea 184 293
Nitrate 994 1,156
NPK 590 924
CN 93 137
Other products 370 412
Total Deliveries Europe 2,232 2,922
     
Americas Deliveries    
Urea 618 630
Nitrate 311 366
NPK 1,154 1,115
CN 272 296
DAP/MAP/SSP 83 108
MOP/SOP 181 119
Other products 172 247
Total Deliveries Americas 2,790 2,881
North America 905 958
Brazil 1,483 1,465
Latin America excluding Brazil 403 457
     
Africa & Asia Deliveries1    
Urea 576 446
Nitrate 56 70
NPK 335 410
CN 57 45
Other products 57 81
Total Deliveries Africa & Asia 1,080 1,052
Asia 870 811
Africa 210 240
     
Industrial Solutions Deliveries    
Ammonia2 132 150
Urea2 381 396
Nitrate3 320 280
CN 52 47
Other products4 374 406
Water content in industrial ammonia and urea 546 487
Total Industrial Solutions Deliveries 1,805 1,767

1 The Africa and Asia business also includes Oceania

2 Pure product equivalents

3 Including AN Solution

4 Including sulfuric acid, ammonia, and other minor products

Maire Tecnimont SpA – Management Brief

Europe, Management Briefs

Italian engineering and technology group Maire Tecnimont SpA reported the resignation of Pierroberto Folgiero from the positions of Director, CEO, and COO on April 21, and which will become effective May 15.

Alessandro Bernini, currently Group CFO of Maire Tecnimont since 2013, has been appointed the new CEO and COO, effective May 15. Bernini has resigned his position of Group CFO, with the resignation becoming effective on May 15.

Russia Cuts Gas Supplies to Poland and Bulgaria

Eastern Europe, Featured, Natural Gas, News, Poland, Russia

Russian oil and gas group Gazprom PJSC said it had halted natural gas exports to Poland and Bulgaria effective April 27, due to the two importing countries’ refusal to pay for their gas in rubles. The move is seen as a warning shot by the Kremlin across the bows of Europe, further escalating tensions between the two over energy supplies and Russia’s invasion of Ukraine.

The gas supply suspension follows the signing of a presidential decree by Russian President Vladimir Putin on March 31 demanding that “unfriendly” countries and regions pay for their gas supplies in rubles.

Poland on April 27 confirmed that Russian gas supplies had stopped.

Gazprom said services would not be restored until payments are made in the Russian currency.

Importers pay in advance for their Russian gas, but as they have gone to pay for futures supplies, Russia has stood firm on its demand that new purchases have to be made in rubles, according to a BBC report.

The halting of supplies to Poland and Bulgaria was the “start of Russia exerting economic pressure on Europe,” and a move that could “escalate” with other European Union (E.U.) countries, the report cited the Head of Oil and Gas Research at Investec, Nathan Piper, as saying.

After initially spiking by 24 percent on news of the Russian supply halt to Poland and Bulgaria, European gas prices had fallen back on April 28. The benchmark front-month gas contract (currently May) on the Dutch TTF in Amsterdam had fallen to €98.45 per megawatt-hour (MWh) by 3:59 p.m. (GMT) on April 28, down 8.356 percent on the day. It had closed at €107.43 on April 27. The front-month contract had finished at €92.84 per MWH at the end of last week.

Poland’s state-controlled oil and gas company, PGNiG, confirmed on April 27 that the country had stopped receiving natural gas from Gazprom under the Yamal contract, the Polish Press Agency (PAP) reported, citing a PGNiG press release.

The Polish oil and gas group described the gas delivery suspension as a breach of contract, and said it would take steps to reinstate the gas supply. Some 53 percent of the group’s gas imports came from Gazprom in the first quarter of this year, according to the PAP report.

Poland’s government said late on April 26 that the country has enough natural gas in storage and customers will not be affected, Bloomberg reported. Poland’s natural gas storage facilities are filled to around 80 percent, according to PGNiG.

Grupa Azoty SA, the country’s largest fertilizer producer, said on April 28 that for the time being, supplies of natural gas to companies in the group are continuing without any disruption, and production is sustained at planned levels.

The producer added that it and its subsidiaries have contingency plans and operational scenarios in place in the event that gas supplies are disrupted or curtailed.

Grupa Azoty and its subsidiaries receive natural gas under a contract with Polskie Górnictwo Naftowe i Gazownictwo SA, which has technical capabilities to source gas from various directions – for example, through system interconnectors on its western and southern borders and via the LNG terminal in the Polish Baltic Sea port of Świnoujście. The fertilizer producer added that the mix is supplemented by domestically-produced gas and volumes withdrawn from gas storage facilities, where Poland has accumulated substantial stocks.

Poland already was planning to stop importing Russian gas by the end of this year, when its long-term contract with Gazprom expires.

The government added that Poland will be buying gas from all possible directions and will strive to increase volumes of gas at the country’s storage facilities. The country’s alternative supply sources include the aforementioned LNG terminal at Świnoujście. Also on May 1, a new gas pipeline connection with Lithuania is due to open, which will give Poland access to gas from that country’s LNG terminal.

Bulgaria relies on Gazprom for more than 90 percent of its gas supply, and Bulgarian state gas company Bulgargaz also transports Russian gas via an extension of the Turk Stream pipeline to neighboring Serbia, and from there to Hungary.

Bulgarian Energy Minister Alexander Nikolov told reporters on April 27 that Gazprom will be in breach of its current contract if it halts the flow.

The country on April 28 was reported to have secured natural gas for April 27-30 and for May to replace the lost Russian gas, according to a Bloomberg report, citing two people familiar with the transaction, who wished to remain anonymous as details of the deal had yet to be made public.

According to the report, Greece’s Mytilineos, Greek state-gas supplier Depa Commercial SA, and Hungary’s MET Hungary Ltd. won a tender to provide the gas. The May amount is equivalent to 61,000 MWh/day, according to one of the sources cited.

Separately, Bulgargaz is buying gas directly from Mytilineos and Depa Commercial for April 27-30.

Bulgaria’s main fertilizer producers are Neochim, with 0.45 million mt/y of ammonia capacity, and Agropolychim, with 0.21 million mt/y of ammonia capacity, according to Green Markets data. Both companies produce ammonium nitrate, among other nitrogen products. Agropolychim also produces TSP, with annual capacity of 0.3 million mt.

Austrian imports of Russian gas have not been disrupted by Russia’s decision to stop Gazprom gas flows to Bulgaria and Poland, Bloomberg reported on April 27, citing an emailed statement from Austrian oil and gas company OMV AG.

Meanwhile, Austrian Chancellor Karl Nehammer has denied several reports circulating from a number of German media outlets and others that OMV is preparing to pay for its Russian natural gas in rubles, and reiterated that the payments will be made in euros, Interfax has reported.

OMV is the majority owner of Vienna-based polyolefins and fertilizers major Borealis AG, with a 75 percent stake in the company.

The European Union reiterated to Member State companies this week that they risk breaching sanctions if they open bank accounts in rubles. Some European companies reportedly have been quietly taking steps to prepare to comply with Putin’s decree that gas must be paid for in rubles.

Hungary’s government confirmed early this week that it is paying in euros to Russia’s Gazprombank, which is then allowing it to be converted into rubles, according to a Bloomberg report. But it is unclear whether Hungary has also opened a ruble account.

Bloomberg reported on April 27 that four European buyers have already paid Gazprom in rubles for their gas, and 10 firms have opened the accounts at Gazprombank required to meet the new requirements. Hungary’s Cabinet Minister Gergely Gulyás confirmed they were one of the 10.