All Posts from October 7, 2022

LSB Terminates UAN Agreement with CVR; Producer to Market Directly to Customers

Featured, News, Southern Plains, UAN

LSB Industries Inc.’s subsidiary, Pryor Chemical Co., on Sept. 30 provided notice of termination under the UAN agreement with Coffeyville Resources Nitrogen Fertilizers LLC (CVR), dated March 3, 2016 (GM March 14, 2016). The termination will be effective as of Dec. 31, 2022.

Under the agreement, CVR had the exclusive right to purchase substantially all of the UAN produced at the Pryor, Okla., facility. LSB said Pryor elected to terminate the agreement in order to market the product itself.

“Since the initiation of our original agreement more than six years ago, CVR has been an excellent partner and we appreciate their outstanding work as they close out the remainder of 2022,” an LSB spokesman told Green Markets. “Beginning in 2023, LSB will market Pryor’s UAN directly to our end customers. We are excited to continue our support for the American farmer and do our part to feed the world. We also look forward to finding new and creative ways to deliver value to both our customers and to our company.”

At the time the agreement was struck in 2016, it was estimated that the plant had a UAN capacity of approximately 300,000 st/y; however, LSB upgrades over the years have taken that to 350,000 st/y.

Prior to the agreement with CVR, LSB had a similar one with Koch Nitrogen Co., which began in 2009 and ended with the CVR agreement.

Nutrien Ltd. – Management Brief

Management Briefs, Saskatchewan

Nutrien Ltd. on Oct. 3 announced the appointment of Chris Reynolds as its Executive Vice President and President of Potash, effective immediately. He has been co-leading the Potash business for the past year.

Reynolds has been with Nutrien for over 18 years in various sales leadership positions, most recently as Senior Vice President, Sales. He and his family will be relocating to Saskatoon from the Chicago area.

In addition, Nutrien announced the appointment of Mark Thompson to the newly formed role of Executive Vice President and Chief Commercial Officer, effective Nov. 1. He has been with Nutrien for over 11 years and served in a number of leadership and executive roles across the business, most recently as Executive Vice President and Chief Strategy & Sustainability Officer.

In this position, he will lead commercial planning, as well as transportation, distribution and logistics, and global sales of crop nutrients for Nutrien’s Potash and Nitrogen & Phosphate businesses. He will also oversee Nutrien’s Economics and Market Research teams.

Nutrien Mine Worker Seriously Injured

News, News Briefs, Potash, Saskatchewan

A Nutrien Ltd. employee was seriously injured at the Cory potash mine in Saskatchewan when a piece of a tunnel roof fell on him.

“Safety is always our first priority, and we take it very seriously,” a Nutrien spokesman told Green Markets. “Unfortunately, on Thursday Sept. 29, one of our colleagues, an underground employee at our Cory potash mine in Saskatchewan, was seriously injured in a ground fall – when a piece of tunnel roof falls down.

“Our Mines Rescue Team responded and provided immediate care prior to his being transported to Saskatoon hospital, where he is undergoing treatment. We are hopeful for his recovery, and are working with the Saskatchewan Mine Inspector to review the incident,” the spokesman added.

Tennessee Farmers Cooperative

Management Briefs, South Central

Andy Woodward has been named Chief Operating Officer for Tennessee Farmers Cooperative, replacing Phillip Farmer, who was named Chief Innovation Officer. Most recently, Woodward was a TFC Regional Manager; prior to that, he was Manager of the Marshall Farmers Cooperative for 15 years.

Woodward also worked in agronomy sales and service for Montgomery Farmers Cooperative after he finished a TFC management training program soon after graduating from Austin Peay State University with a degree in agriculture with a focus on agribusiness.

Arianne Phosphate – Management Brief

Canada, Management Briefs, Phosphate

Arianne Phosphate, Saguenay, Quebec, a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, announced on Oct 3 that Geneviève Ayotte will be joining the company as its CFO, replacing Pier-Élise Hébert-Tremblay.

Ayotte is a member of the Certified Professional Accountants of Quebec and graduated from HEC Montréal with a Bachelor’s Degree in Business Management and a D.E.S.S. in public accounting. Outside of her accounting profession, she also serves as President of Women in Mining – Montreal.

The company said that since 2008 she developed extensive mining knowledge, specifically in public accounting, at PricewaterhouseCoopers LLP. Among the many mining clients she worked with, Arianne said she has been an important member of the team working on the Arianne account from 2016-2021, serving most recently as Audit Director.

Hocking International – Management Brief

Houston, TX, Management Briefs, Specialty

Houston-based Hocking International reported that Scott Messer has been promoted to Director – Ag Business Unit, and Joe Enciso has been promoted to Director – T&O Business Unit. Messer has been with Hocking International for five years, and Enciso has been with the company for six years.

“Scott and Joe are both experts in their respective industries and are very capable leaders,” said Mark Auchampach, Chief Commercial Officer. “As Hocking continues to grow and expand to meet the needs of our customers, having business unit leaders with their experience and capabilities will be critical to our success.”

Hocking also added new sales personnel to its commercial team. Jeremy Buhl and Eric Skorich have joined the company as Area Sales Managers, with Buhl responsible for expanding Hockings’s footprint in the Midwest, and Skorich responsible for Turf and Ornamental sales in the Midwest and Mid-Atlantic markets.

Buhl joined Hocking in 2021, having previously worked for PBI Gordon, Nilefos West, and Farmland Industries. Buhl is based in Papillion, Neb., and will report to Messer. Skorich most recently worked for Bayer Environmental Science and is a Certified Class A Golf Course Superintendent. Skorich will report to Enciso.

Mosaic Reports Modest Damage from Ian, Expects to Lose Up to 250,000 mt, 1-2 Weeks for Repairs

Featured, Florida, News, Phosphate, Tampa

The Mosaic Co. reported on Oct. 3 that significant flooding and high winds were experienced throughout Central Florida during Hurricane Ian and caused modest damage to its phosphate facilities and supporting infrastructure.

However, the company said early assessments indicate that phosphate production could be down by approximately 200,000-250,000 mt, split roughly evenly between the third and fourth quarters of 2022. This could be valued as high as $190 million at Tampa based on current Florida phosphate export prices in Green Markets. Repairs are expected to be completed over the next 1-2 weeks.

While Mosaic plants were being repaired, the company was reported to be loading fertilizer again at Tampa, according to an Oct. 3 report by Bloomberg. The ship Basic Challenger returned to Mosaic’s terminal in Gibsonton, Fla., on the east side of Tampa Bay. The ship moved away from Tampa as the storm approached and moved back to the terminal, ship-tracking data showed.

In addition to production impacts, the timing of shipments was also affected by the storm. Phosphates sales volumes in the third quarter are now expected to total 1.60-1.65 million mt, as port and rail closures delayed late third-quarter shipments to October. Mosaic plans to provide further updates when it reports third-quarter results.

As Mosaic completes repairs, The Mosaic Co. Foundation is donating $100,000 to its most hard-hit operating areas. These funds will be used to support local recovery efforts in Florida’s Hardee, Manatee, and DeSoto counties. Prior to hurricane season beginning, Mosaic provided $55,000 in storm preparation funds to organizations across Central Florida.  

In addition, The Mosaic Co. Foundation contributed $300,000 to an Employee-to-Employee Assistance Fund. This fund will be dispersed to employees who need financial assistance with hurricane recovery efforts throughout Central Florida. The company will also double match any contributions made by Mosaic employees to this fund.

In other Ian fertilizer-related news, Sylvite Florida was able to return its two warehouses in Lakeland and Bartow, Fla., to operation this week after closing both locations on Sept. 27 in preparation for Ian, a company source told Green Markets. Both sites sustained minor roof damage and flooding from the storm, along with power outages, but no fertilizer materials were damaged.

Florida Fertilizer’s blending operation in Wauchula, Fla., was reportedly in Ian’s direct path. Industry sources said the site did not sustain major damage from the storm, but power outages prevented the facility from returning to operation early in the week. Efforts to reach Florida Fertilizer were unsuccessful at midweek.

Alaska, Energy Companies Assess Blue NH3 Project; Nutrien Could Benefit

Alaska, Blue Ammonia, Blue Hydrogen, Featured, LNG, News

The state-owned Alaska Gasline Development Corp. (AGDC) on Oct. 4 announced the signing of a Memorandum of Understanding (MOU) with Mitsubishi Corp., TOYO Engineering Corp., and Hilcorp Alaska to assess the potential of utilizing North Slope natural gas to produce blue ammonia in the Cook Inlet region of Southcentral Alaska. The gas would be transported via a long-proposed 807-mile pipeline to Nikiski on the Kenai Peninsula.

The parties said the carbon dioxide generated from this process is able to be captured and sequestered in secure underground geologic formations, and Alaska’s Cook Inlet basin has been identified by scientists as having world-class carbon sequestration potential. This assessment project will further define Cook Inlet’s sequestration potential and the economics for producing blue ammonia alongside LNG in Alaska.

The parties said the project has the potential to liquefy some 20 million mt/y of LNG for export. Some of that gas could be used for blue hydrogen and ammonia. AGDC had not responded to inquiries as to how much blue hydrogen and ammonia production is under consideration.

However, in a May presentation, Alaska LNG Project Manager Brad Chastain said that an “existing ammonia plant is well positioned to be the first mover in the market.” Nutrien Ltd. has a long-idled nitrogen plant on the Kenai Peninsula. Nutrien’s legacy company, Agrium Inc., permanently closed the plant in late 2007 (GM Oct. 1, 2007) due to a shortage of natural gas. Nutrien/Agrium has since considered options for bringing the plant back up, including coal gasification, the North Slope pipeline, and new gas discoveries in Cook Inlet, but has kept the complex down.

Back in 2013, plant capacity was put at 1.35 million st/y of urea and 1.1 million st/y of ammonia (GM Nov. 4, 2013). “We are aware of several very early-stage proposals for the supply of affordable natural gas that could allow us to bring our operations on the peninsula back online, and we continue to work closely with the state as these opportunities are developed,” a Nutrien spokesperson told Green Markets.

“We are encouraged by the state’s interest in projects on the peninsula and have maintained our facilities to ensure that they are available for start-up if the conditions arise that will allow for sustainable operations there,” the spokesman continued. “However, we also recognize that these gas projects are still in the early stages of development and cannot offer further comment at this time.”

In addition to Cook Inlet’s carbon sequestration capabilities, the parties factored other unique Alaska advantages into the decision to initiate the ammonia assessment. Round-trip tanker transport from Alaska to key Asian markets is more than 12,000 miles shorter than from the US Gulf Coast, reducing costs and shipping emissions. They also said Alaska has a 45-year record of success exporting LNG to Asia.

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