- Long-term, lower-cost natural gas contracts in Trinidad
- Almost two-thirds of our ammonia production in Trinidad, close to the world's largest importer, the US
- US–manufactured ammonia operations somewhat geographically insulated, and make more than 80 percent of sales to stable industrial customers
- Hedging program mitigates natural gas price risk related to US production
- One-third of our ammonia production in the US, using higher-cost natural gas
- Contractual commitments to US industrial customers may force us to operate unprofitably amid rising gas prices
- Many nitrogen plants globally, with significant government ownership and influence
- Narrowing gap in global gas prices is raising floor price for nitrogen
- Europe now the swing supplier with higher gas costs, supporting a higher floor for US nitrogen prices
- LNG projects in low-cost gas regions provide alternatives for monetizing gas, reducing new supply pressures in nitrogen
- Higher construction costs discourage greenfield plants
- Higher ocean freight costs discourage nitrogen imports into the US from Eastern Europe and the Middle East
- Abundant low-cost natural gas in developing countries may lead to its monetization as nitrogen products
- Shorter construction period means new capacity can impact the market more quickly than for other primary nutrients
- Pending changes in transport regulations in North America could substantially increase costs of shipping ammonia and difficulty in siting terminals