Ammonia cargoes loading normally near Odessa despite deadly unrest

06 May 2014 15:50 Source:ICIS News

LONDON (ICIS)--Ammonia cargoes are loading normally in the Black Sea port of Yuzhny and Odessa Port Plant (OPZ) continues to produce the nitrogen fertilizer despite deadly civil unrest in the Ukrainian city from which it takes its name, a market source said on Tuesday.

More than 40 people died in a huge fire and violent street clashes on 2 May, the busy seaport of Yuzhny around 30km to the east is operating as usual and there are no delays to loadings, the source said.

He added OPZ is producing ammonia at a good rate as there are no disruptions to deliveries of natural gas, which is a key feedstock for ammonia production.

"The plant is okay, vessels are arriving as usual and loadings are okay," the locally based source confirmed.

OPZ recently shut down its second urea line due to poor market conditions, having taken its first urea unit offline in early April for the same reason, in a move that will boost short-term spot ammonia availability.

At least 311,000 tonnes of ammonia is scheduled to load in Yuzhny in May, with around a quarter of that total having loaded in the past few days for destinations including the US, Morocco and Israel.

Major international ammonia buyers including Koch, Yara and Transammonia (Trammo) are scheduled to lift cargoes in Yuzhny this month.

According to the OPZ website, the plant can produce up to 3,400 tonnes/day of ammonia and has a urea manufacturing capacity of 2,500 tonnes/day, while OPZ can load up to 2,000 tonnes/hour of ammonia.

By Richard Ewing