06 June 2013 14:05 [Source: ICIS news]
LONDON (ICIS)--Algerian ammonia producer Fertial has awarded Norwegian fertilizer giant Yara under its recently-closed 200,000-tonne sales tender, with the inaugural cargo likely to load before the end of June, market sources disclosed on Thursday.
Up to 35,000 tonnes of ammonia a month for the next six months will be lifted from ports close to the producer's plants at Annaba and Arzew on the Mediterranean coast.
No price has yet been heard for the cargoes, although the formula will be based on the benchmark Yuzhny price which currently stands at $515/tonne (€391/tonne) FOB (free on board) for June loadings.
The tender, which opened on 8 May and closed on 23 May, is understood to have attracted interest from several parties including international trader Transammonia (Trammo).
A joint venture between Spain's Fertiberia and Algeria's Asmidal, Fertial produced more than 850,000 tonnes of ammonia in 2012, of which a record 750,000 tonnes was exported. The producer is targeting 840,000 tonnes of ammonia in 2013.
According to market sources, the 200,000 tonnes of ammonia sold under tender to Yara would normally be lifted by Fertiberia, with the Spanish group now likely to have to acquire ammonia cargoes from alternative sources.
One of these sources could be the new $2bn Sorfert Algeria plant which is awaiting the necessary operating permits from the Algerian government.
That plant, a joint venture between Dutch-based OCI N.V. and state-owned Sonatrach, will produce 800,000 tonnes/year of merchant ammonia and 1.2m tonnes/year of urea for export once fully operational.
($1 = €0.76)
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