Canada Agrium fighting Argentina over natgas surcharge

22 February 2013 16:25  [Source: ICIS news]

TORONTO (ICIS)--Agrium is taking legal steps against a surcharge imposed by Argentina on natural gas, an executive for the Canada-based fertilizer major said on Friday.

Argentina’s government last year imposed a $2/MMBtu surcharge on Argentine gas. Calgary-based Agrium is a stakeholder in Argentina’s Profertil nitrogen fertilizer plant in Bahia Blanca.

“We are in the court system, challenging that decree from the government,” Ron Wilkinson, president of Agrium’s wholesale business, told analysts during the company’s 2012 Q4 and full-year results conference call.

Wilkinson said that Agrium was accruing the surcharge in its accounts, but was not paying it at this time.

CEO Mike Wilson added that while Agrium was talking to the government about the surcharge, “the question is, how successful are we going to be about it".

By: Stefan Baumgarten
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