PIC plans to reduce urea output due to gas shortage

29 April 2008 11:48  [Source: ICIS news]

Fertilizer output is reducedLONDON (ICIS news)--Kuwait's Petrochemical Industries Co (PIC) will have to cut back urea production during May due to reduced gas supplies, a company source said on Tuesday.


PIC’s three urea plants at Shuaiba, which had a total capacity of around 1.04m tonnes/year, would be forced to cut back output for around three weeks when gas supplies were reduced by 50%, the source added.


The Kuwaiti government informed PIC that gas supplies to Shuaiba would be disrupted by revamping and construction work at a government-owned power plant about 80km (50 miles) from the city.


The Kuwaiti government originally warned the reduction could last throughout May and June but the time period has since been reduced to three weeks.


PIC was unable to specify exactly how much tonnage would be lost but said the impact on its customers would not be overly detrimental.


“Some changes to the shipping schedule have been mutually agreed [with customers],” the source added.


No further details, including precise dates for the gas cutback, were disclosed.


PIC has long-term agreements with customers in countries including the US, Thailand and Australia.

By: Carl Roache
+44 20 8652 3214

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