Chemical and environmental solutions company Yara International ASA will be shuttering its wholly-owned ammonia plant in Point Lisas operated by Yara Trinidad Limited on December 31, 2019.
Headquartered in Oslo, Norway, Yara International ASA operates in over 60 countries with approximately 17,000 employees. The company reported revenues of US$12.9 billion.
In a press release issued last week, the company noted, “The Trinidad plant is one of Yara’s smallest ammonia plants, with an annual production capacity of approximately 270,000 tonnes ammonia. In addition to small scale, the plant has a lower energy efficiency than Yara’s average.”
“The Trinidad plant is one of Yara’s smallest ammonia plants, with an annual production capacity of approximately 270,000 tonnes ammonia.”– Yara
“Plant profitability has also been impacted by lower ammonia prices, and in addition negotiations with The National Gas Company of Trinidad and Tobago (NGC) have failed to reach an agreement that could sustain plant operations,” Yara International ASA further stated.
The closure of the plant will generate costs of approximately US$25 million, Yara reported, which will be classified as a special item in its fourth-quarter 2019 results. The book value of the plant is zero, taking into account several years of asset depreciation.
The plant is, however, only one of three ammonia plants operated by Yara Trinidad Ltd. As such, Tringen I and Tringen II, which it jointly owns with National Enterprises Ltd (NEL), will continue to operate after the closure.
The Oilfields Workers’ Trade Union (OWTU) has since indicated its willingness to purchase the plant from Yara.