10 September 2013 16:53 [Source: ICIS news]
LONDON (ICIS)--Algeria-based nitrogen fertilizer producer Sorfert concluded its first sale on Tuesday after awarding a 20,000-tonne granular urea cargo to OCI Nitrogen at $315/tonne (€236) FOB (free on board), a company official said.
Invitations for the tender were issued on 4 September with bids to be submitted by 10 September.
The cargo, which was produced at the $2bn Sorfert plant, will load this month and is likely to be shipped to Europe.
The company has sufficient stocks to cover requirements under the current tender as its two urea lines started production on 20 August.
It is also understood that Sorfert may issue another urea tender in the next few weeks, although no details are yet available.
The facility's ammonia lines are now functioning and the producer expects the first ammonia export cargo to load later this month or in early October, although it is not clear if the sale will be via a tender or on a spot basis.
Once fully operational, Sorfert will produce 800,000 tonnes/year of merchant ammonia and 1.3m tonnes/year of granular urea for export. Ammonia will be pumped via a pipeline to Arzew port, and the urea will be moved by road to warehouses at the dockside.
OCI Nitrogen NV holds a 51% stake in the joint venture, and Algeria's state-owned oil and gas producer Sonatrach a 49% share.
($1 = €0.75)
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