PotashCorp announced Feb. 1 that it will soon begin an 18-month process to restart its anhydrous ammonia plant in Geismar, La. The plant has the capacity to produce 1,500 st/d. It was idled in 2003 due to high natural gas prices (GM Jan. 27, 2003). Since then the company has used imported ammonia to make its other products at Geismar. However, the company explained that natural gas prices are now lower, thereby allowing the plant to return to production.
PotashCorp will be investing $158 million to bring the facility back up. It will hire 33 full-time employees and 13 contractors. The location currently has 210 employees involved in the production of other products, including nitric acid, UAN, urea, and phosphoric acid.
Rumors had circulated in recent weeks that the plant might be coming back up. The company denied reports that it had actually begun production, and reiterated that the process to restart the long-idled plant will take 18 months. Sources were speculating last week that there might be as much as 10,000 st per month of excess ammonia for the market once PotashCorp’s internal production needs are met. The company said this was conceivable, but that it would depend on internal needs.
Lower natural gas prices are also credited with recent news that Pandora Methanol LLC, a unit of Janus Methanol AG, plans to restart the long-idled Beaumont ammonia and methanol plants (GM Jan. 3, 2011). In addition, LSB Industries Inc. says its Pryor, Okla., nitrogen plant is meeting expectations (GM Jan. 10, 2011) as it continues to reach for full production after coming up from several years of dormancy.