Applications
Fertilizer A basic building block for proteins and enzymes in all living cells; speeds growth of plant roots, stalks and vines and improves yield and quality
Feed supplements Essential to RNA, DNA and cell maturation
Industrial Used in plastics, resins and adhesives
Competitive Strengths
- Almost two-thirds of our ammonia production is in Trinidad, where we enjoy long-term, lower-cost natural gas contracts
- Proximity of Trinidad production to US, the world’s largest nitrogen importer
- 80% of US-produced ammonia is sold to stable industrial customer base
- Hedging program mitigates natural gas price risk related to US production
| Strategies |
Risks |
Mitigation |
Capability to Deliver |
- Leverage benefits of lower-cost Trinidad production
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- Government ownership in industry can lead to supply increases without consideration of economic impact
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- Trinidad’s proximity to US and cost advantage through long-term, lower-cost gas contracts; locked-in ammonia vessel leases
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- An average of 95% of our Trinidad facility natural gas is locked in through 2012, and 73% through 2018
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- Concentrate US production on industrial sales
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- Nitrogen production in US is subject to historically high and volatile US natural gas costs
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- Emphasize sales to stable industrial customer base
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- More than 80% of our US manufactured ammonia is sold to industrial customers, much linked directly by pipeline
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