CF Industries Holdings Inc., Deerfield, Ill., and the J. R. Simplot Co., Boise, have entered into an agreement that allows CF to ship, store and distribute anhydrous ammonia from Simplot’s Rivergate Terminal in Portland, Ore., starting in 2019.
The arrangement will enable CF to meet growing demand for anhydrous ammonia in Pacific Rim countries, a region that imported over 4.1 million mt of the product in 2017. CF intends to supply the ammonia from its Medicine Hat, Alberta nitrogen complex, which has among the lowest production costs in the company’s manufacturing network. Additionally, CF anticipates selling to local customers from the terminal.
Simplot’s Rivergate Terminal is the largest deep water ammonia terminal on the U.S. West Coast, and has two 25,000 st ammonia storage tanks on site. The terminal is located on the Willamette River in Portland approximately 2.5 miles upstream from its confluence with the Columbia River.
Jacobs Engineering Group Inc., Dallas, announced Oct. 21, that it has entered into a definitive agreement to sell its Energy, Chemicals and Resources (ECR) segment to WorleyParsons Ltd. for $3.3 billion, consisting of $2.6 billion in cash and $700 million in WorleyParsons ordinary shares. The transaction value represents a multiple of more than 11.5 times trailing twelve-month (TTM) adjusted EBITDA for the ECR business. Following the completion of the transaction, Jacobs will be focused solely on its two higher growth, higher margin lines of business – Aerospace, Technology, Environmental & Nuclear (ATEN) and Buildings, Infrastructure & Advanced Facilities (BIAF).
Results in the TCP urea tender came in below expectations. Ameropa came in with lowest offer at $346.11/mt CFR with Saudi material. Prior to the closing of the tender, industry sources expected prices to center on the low-$360s/mt CFR. In the end, four other offers of the total 10 also came in below $360/mt CFR.
The estimated netback of the Ameropa tons is just under $330/mt FOB, well below the $339/mt FOB price estimated from the Indian tender earlier this month.
Shipment is to commence within 30 days of issuing the letter of credit.
Pakistan called the tender after the government calculated it would fall short of urea supplies by about 400,000 mt this season. The remaining 300,000 mt is expected to be covered by increased domestic production. Rumors at the time the tender was called put the urea deficit closer to 600,000 mt, a number Pakistani officials dismissed as too high.
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