Ukraine’s OPZ restarts fertilizer production this week

02 February 2018 12:53 Source:ICIS News

LONDON (ICIS)--Ukraine’s ammonia and urea fertilizer producer Odessa Port Plant (OPZ) restarted ammonia and urea production this week after securing a new gas supply deal with All Ukrainian Energy Company, according to sources on Friday.

The plant is now operating one ammonia line and both its urea units. The ammonia line restarted early this week on 29 January and the urea lines restarted on 31 January, according to sources.

The Odessa-based producer has been shut down since last November, around the time a gas tolling deal with Energy Resources of Ukraine (ERU) ended.

A commitment made by ERU for a cargo of prilled urea to a trader is still pending and this is expected to be the first shipment from the plant once production resumes to full capacity, according to sources.

According to OPZ's first deputy director, Nikolai Shchurikov, up to 3m cubic metres of gas will be supplied to restart the units, followed by up to 60m cubic metres a month as a give-and-take raw material.

OPZ has two ammonia production units with a capacity of 450,000/year each while the two urea lines each have a capacity of 330,000 tonnes/year.

Additional reporting by Richard Ewing

By Deepika Thapliyal