Nutrien Sees Trinidad Fertilizer Plant’s Output Squeezed for Longer

(Bloomberg) -- Ammonia output at one of the world’s largest production facilities will be curbed for the foreseeable future due to Trinidad & Tobago’s natural gas supply constraints, according to top fertilizer maker Nutrien Ltd.

Most Read from Bloomberg

Trump Cites Self Incrimination Concern in Lawsuit Against Cohen

QQQ Churns in Late Hours on Apple, Amazon Earnings: Markets Wrap

Elon Musk Says Treasury Bills Are ‘No-Brainer’

Apple Surprises in China, Sets India High During Sales Slump

China Official’s Call to Save Xi’s City Angers Flood Victims

Production capacity for the key crop nutrient ingredient at the island nation’s Point Lisas facility averaged only 70% in the second quarter, Nutrien Chief Executive Officer Ken Seitz said in a Thursday phone interview. That’s down from 80% in the previous quarter.

“As we look at gas availability in the island, we have the view that we are not going to be returning to 100% of capacity in Trinidad anytime soon,” Seitz said, citing ongoing talks with state-owned supplier National Gas Co. The Canadian company’s new mid-cycle assumptions expects the plant to produce at around 80% capacity.

Read More: Top Fertilizer Maker Curbs Trinidad Production on Gas Shortages

Over the last decade, the Trinidad ammonia utilization ran at 85%, said Alexis Maxwell, a Bloomberg Intelligence analyst. The Trinidad complex, which processes natural gas into ammonia at four plants, supplies customers in the US, Caribbean and Latin America. The plants produce about a third of Nutrien’s ammonia capacity.

--With assistance from Gerson Freitas Jr..