IPL expects US ammonia plant shutdown to last a month

Australian fertilizer firm Incitec Pivot (IPL) expects a hurricane-driven shutdown at its 800,000 t/yr Waggaman ammonia plant in the US state of Louisiana to last until the end of September.

The plant was taken off line on 28 August in anticipation of Hurricane Ida. IPL has also declared force majeure on customer contracts for ammonia supplies from the plant, estimating a loss of earnings before interest and tax of around $28mn based on current market prices for ammonia and the planned plant restart schedule.

Hurricane Ida made landfall in Louisiana nearly two weeks ago, forcing other ammonia plants to also go off line.

Inspections at the plant since the hurricane have not identified any material damage, IPL said. "The plant's restart has been awaiting restoration of high-voltage industrial power and utilities from third-party providers," it added.

Argus assessed US Gulf coast ammonia prices at $620/t cfr on 9 September, unchanged from the previous week.

By Aabha Gandhi