Ukraine’s OPZ delays gas tolling auction by 72 hours

LONDON (ICIS)–Ukrainian nitrogen fertilizer manufacturer Odessa Port Plant (OPZ) on Friday postponed today’s electronic auction for its new gas tolling partner until after the weekend.

The ammonia and urea producer will on Monday choose from a seven-strong shortlist of companies seeking to become its new feedstock supplier for the next two years.

OPZ gave no reason for the delay, but has only around a fortnight to select its new feedstock supplier, as its current contract with Ukraine’s Agro Gas Trading (AGT) expires on 30 April.

AGT has been the exclusive gas tolling partner of the state-owned company since mid-2019.

The seven parties seeking to win the contract are: Montech, Nika-Agrotrade, Euroenergotreyd, Gas Supply Company Naftogas Trading, AGT, Trading House Sokar Ukraine, and Yug-Gaz.

“The scope of services (works) shall mean production of commercial ammonia up to 52,000 tonnes/month and commercial urea up to 85,500 tonnes/month subject to operation of two ammonia plants and two urea plants and supply of toll natural gas within the range from 100m to 120m cubic metres per month,” OPZ said in tender documents released recently.

Last year, OPZ recorded its highest annual output in five years, with 821,200 tonnes of urea and 566,800 tonnes of ammonia produced, of which 96,500 tonnes was sold on the merchant market.

The firm’s storage and logistics infrastructure at Yuzhny handles around 250,000 tonnes/month of Russian and Ukrainian ammonia for loading on seaborne vessels for discharge in North Africa, Europe and India.

The 15,000 tonne capacity ammonia tanker Marycam Swan under loading at Yuzhny for global commodities trader Trammo. Photo courtesy of OPZ.