New ammonia plant could reduce Mosaic’s import dependence

: Fertilizers
13/01/04

Houston, 4 January (Argus) — Mosaic could become far less dependent on imports if the company moves forward on building a new ammonia plant at its existing Faustina site in St James Parish, Louisiana.

The proposed Faustina expansion is estimated to cost around $700mn, and the plant would have a capacity of 2,200 t/day (803,000 t/yr). The initial front-end engineering and design was recently awarded to Technip, with Houston, Texas-based operations.

Mosaic already has an installed ammonia capacity at just over 512,000t of ammonia in Louisiana. But the producer is dependent on ammonia imports as a feedstock for its phosphate production. Presently, Yara supplies around 1mn t/yr ammonia to phosphate producer Mosaic, typically sourcing from production in Trinidad and Tobago or Yuzhny. But with natural gas prices so low in the US, it is more cost effective for Mosaic to produce its own ammonia for captive use than to pay for imports and be subjected to increasing freight costs as well.

A Mosaic executive close to the situation said that the Yara-Mosaic supply agreement would necessarily change if the company moves forward with building an ammonia plant.

“We have so many options, and the study will help us figure out which one is the best,” said the executive. “All that's approved right now though is the money for the research into this.”

Faustina is located near both the Nustar ammonia pipeline and the Henry Hub natural gas complex, giving it ideal access to inject merchant ammonia into the system and pull its required natural gas feedstock for ammonia production.

The only problem is that Louisiana is not where the bulk of Mosaic's phosphate production is – Florida is, meaning there are transport issues to hammer out.

The executive confirmed Mosaic is looking at building a new vessel, possibly an integrated tug barge, that would carry around 25,000t of ammonia from Faustina to its phosphate operations in Tampa, Florida. This vessel could also be used for ammonia export, if necessary. If the company intended to move ammonia tonnes up the Mississippi, however, it would have to work with the few companies with long-term charters on ammonia barges.

Industry sources at both Mosaic and Yara indicated that Yara might be better poised to market Mosaic's nitrogen product as it owns nitrogen production in Belle Plaine, Saksatchewan, delivering tons via truck or rail into Canada and the US. It is also the exclusive distributor of Rentech Nitrogen's diesel exhaust fluid (DEF) produced in East Dubuque, Illinois, giving it a heavy presence in the Midwest.

“We know what they've said publicly,” said an executive at Yara. “We've known they've been thinking about this for a few years, and that things will probably have to change. They're not poised to market the nitrogen right now so we would be a good fit for that.”

Neither contact would speak directly on the terms of the relationship between Yara and Mosaic but confirmed it was a long-term, multi-year supply contract.

Mosaic expects a decision on whether the plant will be built to be reached in the next six months. At that point, a further decision will go to the board. Construction could begin by 2014, and production could start as early as 2016.

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CBAM documents outline preliminary ammonia values

25/12/17

CBAM documents outline preliminary ammonia values

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Mosaic halts SSP production in Brazil

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Mosaic halts SSP production in Brazil

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Mosaic pauses Esterhazy potash mining after fatality

25/12/15

Mosaic pauses Esterhazy potash mining after fatality

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US-Belarus potash trade may soften MOP pricing outlook

25/12/15

US-Belarus potash trade may soften MOP pricing outlook

London, 15 December (Argus) — Potash trade between the US and Belarus is set to be reinstated after an absence of almost four years, following the lifting of US sanctions on Belarusian potash on 13 December with immediate effect — a move that could soften the outlook for global MOP prices as supply options increase. The relationship between the US and Belarus had started to ease earlier this year when Belarus agreed to release 52 political detainees from its prisons in exchange for the lifting of some sanctions on Belarusian flagship airline Belavia in September. This limited rapprochement generated talk among market participants of the possibility of a further lifting of US sanctions on Belarus, which could affect Belarusian potash. US sanctions on Belarusian potash , which is produced by state-owned Belaruskali and marketed by BPC, have been in place since 2021. But the announcement over the weekend has largely caught the market by surprise. 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Belarusian MOP has not touched US soil since February 2022, but in 2017-21 an average of 635,000 t/yr of Belarusian MOP was brought into the country. This policy change also comes just days after US president Donald Trump claimed he could impose severe tariffs on Canadian fertilizer imports, and the return of trade with Belarus may be used as leverage for the US in the current tariff war between the two countries. But the US will not be able to replace all of the 11mn-12mn t/yr of Canadian potash it needs with Belarusian product. It is also in line with Trump's strategy to secure the country's critical minerals needs. Trump included potash in the administration's list of American critical minerals this year and ordered the US government to fast-track permit reviews for critical minerals projects . 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Without access to the US and EU markets, Belarus has leaned heavily on markets such as Brazil, China and southeast Asia, often pricing aggressively to maintain market share. The reopening of US trade offers a chance to reduce dependence on these regions. The lifting of the sanctions will also make it significantly easier for companies to trade Belarusian potash around the world, except in the EU and the UK, where sanctions remain on Belarus. Importers that had previously stopped taking Belarusian MOP may now be open to trading with Belarus again. By having an additional supply option, buyers may find they have a stronger negotiating position with existing suppliers, which could put downward pressure on prices. Conversely, markets where Belarus has a strong presence could see a reduction of Belarusian volumes if product shifts toward the US, potentially making those regions less competitive. The policy change also comes at a time when Belarusian MOP capacity is increasing capacity, with the 2mn t/yr Nezhinsky MOP project scheduled for commissioning in the second quarter of 2026, and underscores Belarus' commitment to continue growing its footprint in the global potash market. By Julia Campbell and Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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