Major Tampa sulfur contracts have now been concluded at $155/lt for the second quarter. This is up $5/lt from first quarter business.

LSB Industries Inc. today announced that its Pryor, Okla. chemical facility has commenced operations at its principal ammonia plant at near design rates. On Nov. 21, 2012, LSB announced that the Pryor facility had stopped production to install a replacement ammonia converter and to perform unplanned maintenance. LSB says that work has been successfully completed.

During the outage, with the support of third party professionals, the Pryor facility also undertook extensive programs to review and update operating procedures, to improve mechanical integrity and reliability, and to test soundness of piping and equipment. LSB said the outage at Pryor was longer than originally anticipated due to mechanical issues which arose after initial start-up requiring repairs, along with calibration of new control equipment.

Synagro Technologies, Inc. today announced that it has reached an agreement to sell substantially all of its assets to EQT Infrastructure II, the second fund within the infrastructure investment strategy of EQT, in a transaction valued at $455 million as the culmination of a plan to strengthen its balance sheet and position the company for strategic growth.

In order to complete the sale and deleveraging in a timely and efficient manner, the company is proposing to implement the sale pursuant to Section 363 of the U.S. Bankruptcy Code. As a result, Synagro and certain of its subsidiaries today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Synagro anticipates the sale will be completed in approximately 60 to 90 days.

In connection with the filing, certain existing lenders have committed to provide $30 million of additional capital in the form of debtor-in-possession financing subject to Court approval. Synagro said the financing, along with the company’s cash flow from operations, will provide ample liquidity to operate the business and meet ongoing obligations to customers, vendors, and employees through the completion of the sale process.

Synagro will continue all operations as usual throughout the Chapter 11 process, supporting its more than 600 customer locations across North America that rely on Synagro’s biosolids management solutions to support their daily operations. It said vendors will be paid for all goods and services rendered subsequent to the date of the filing. Additionally, under the sale agreement, all outstanding trade liabilities will be assumed once the proposed sale closes.

While included as part of the sale of assets, Synagro’s special purpose entities, which include its facilities in Philadelphia, Baltimore, and Sacramento, were not included in the Chapter 11 filing.

Founded in 1986, Synagro says it is the largest recycler of organic by-products in the U.S.

EQT is the leading private equity group in Northern Europe with over E 20 billion in raised capital and multiple investment strategies.

High water on the Mississippi River has caused the U.S. Army Corps of Engineers to expand the number of lock closures, further limiting the movement of commercial barges.

The Corps announced on April 22 that it had closed Mississippi Lock 24 in Clarksville, Mo., and Lock 25 in Winfield, Mo., as well as the lock on the Kaskaskia River “to protect critical components and facilities and be able to restore services as quickly and economically as possible after water levels recede.”

The closures are in addition to eight lock closures that were announced earlier between Muscatine, Iowa, and Clarksville (GM April 22, p.11). The Corps on April 18 said it would close Locks 15-22 in staggered intervals beginning on April 18 and extending through April 21 due to high water fed by torrential rains and heavy snow in parts of the Midwest.

“We are working closely with our partner agencies, including the National Weather Service, the U.S. Coast Guard, state and local agencies, and the navigation industry to ensure safety of people and property, ensure safe navigation, and assist in reducing flood risk to communities and business,” the Corps said.

The Corps said locks at Mel Price in Alton, Ill., and in Granite City, Ill., are not currently anticipating closures, based on the most recent forecasts from the National Weather Service. The Corps had reported earlier that barge navigation south of St. Louis, Mo., was also expected to remain open.

The National Weather Service’s daily river forecast on April 23 showed river levels at or above flood stage on the Mississippi at Cape Girardeau, Mo., and Thebes, Ill., and on the Ohio River at Grand Chain, Ill., and Cairo, Ill. In addition, the outlook showed river levels in the next five days reaching and exceeding flood stage at Brookport, Ill., New Madrid, Mo., Tiptonville, Tenn., Caruthersville, Mo., Osceola, Ark., and Tunica, Miss.

Several barge accidents also caused closures at a number of locks over the weekend. The U.S. Coast Guard closed the Mississippi River on April 21 near Vicksburg, Miss., when 30 barges broke free and one sank after hitting a railroad bridge.

On the Illinois River, the Marseilles, Ill., lock was closed on April 18 after nine barges broke away from a tow in high water and four of the vessels sank. Illinois River lock closures were also being enforced at Dresden Island, Starved Rock, and T.J. O’Brien due to high water.

Australia’s Incitec Pivot Ltd. (IPL) today announced that it has approved US$850 million of capital expenditure for the construction of a world scale 800,000 mt/y ammonia manufacturing plant. IPL has been reviewing the project for some time. The plant will be situated on a brownfield site, which is part of Cornerstone Chemicals Co.’s chemical complex in Waggaman, La., situated on the industrial corridor along the Mississippi River.

IPL, through its subsidiary Dyno Nobel Louisiana Ammonia LLC, has entered into a contract with KBR Inc., a global engineering, construction and services company with world leading ammonia technology. This contract is for the engineering, procurement and construction of the plant and will include a license of KBR’s ammonia technology.

Production is planned to commence in the third-quarter 2016. IPL said the plant is sold out from day one of production commencing with 300,000 mt to the group’s own plants in the U.S. The balance is committed to offtake agreements with Transammonia Inc. and Cornerstone Chemicals Co.

The group’s U.S. business, Dyno Nobel, is the largest manufacturer of industrial explosives in North America having nine major manufacturing sites.

The project will be funded by debt facilities and internally-generated cash flows.

IPL Managing Director and CEO James Fazzino said the project met IPL’s strict investment hurdles with compelling financial metrics, with a payback of less than five years and a 15 percent Internal Rate of Return. “Two years ago, IPL identified the unique opportunity to capitalize on a potential investment in the U.S. through a brownfield site, competitively-priced energy, labor productivity and responsive regulatory environment.

“Also, this project leverages the “one off” benefits of the brownfield site, utilizing existing infrastructure, including ammonia logistics and access to the U.S. ammonia market.”

“The plant will sit in the bottom quartile of the global cost curve and takes our U.S. business, and potential future ammonium nitrate expansions, back to U.S. gas economics.”

“This is a unique set of factors that allows IPL to grow its international business and strengthens our presence in one of the world’s largest economies.”

Fazzino said that the project was a good strategic fit for IPL and leverages the group’s core manufacturing competence. He said it brings to seven the number of ammonia plants operated by IPL globally.

“The confidence to proceed with the project was underpinned by support from the State of Louisiana, Jefferson Parish and community,” he said. “The U.S. Federal Administration’s energy policy platform and commitment to manufacturing was also a major factor.

Up to 15 may be dead in the West Fertilizer Co. explosion that occurred just before 8 p.m. Wednesday. More should be known as investigators search the town this morning. The explosion leveled much of the small town of West, Texas.

West Fertilizer Co. is identified as being owned by Adair Grain Inc.

According to initial reports, the facility was fined $2,300 by the U.S. Environmental Protection Agency in 2006 for failure to have a risk management plan meeting federal standards.