Fertiliser prices boom following closure of Gibson Island plant

With prices soaring around the world, it seemed strange to announce plans for Incitec Pivot to close one of Australia`s largest fertilizer plants this week. The soaring price of another commodity (natural gas) seems to have blocked the fate of Incitec`s Gibson Island facility in Brisbane. “The decision to close Gibson Island`s manufacturing facility after more than 50 years of operation is expected to affect up to 170 employees. ” The company will stop producing natural gas at the end of 2022.

Incitec Pivot`s decision to stop production on Gibson Island is part of a long list of fertilizer news directed to Australian farmers. “So, when I hear the review via Incitec, another wrench is thrown into the job and grows on how to make sure I`m covered and how to make sure it`s a product It adds a bit of complexity to the minds of those who say, ” Thomas Elders Markets analyst Andrew Whitelaw said the Russian announcement was yet another” death by julienne “for Australian farmers. Whitelaw According to a study by Australian wheat producers, 2. 8 tonnes and 1 tonne of diammonium phosphate (DAP) were sold to buy “The biggest risk for grain farmers next year is the high price.

It`s about buying supplies, but there are no high-priced grains, “he said. ” One of the biggest problems facing the fertilizer industry is natural gas, which is an important input to ammonia production. Prices of natural gas have reached historic highs in the past few weeks as fuel demand growth in the Northern Hemisphere clashed with a lacking supply. In 2018, Central Petroleum signed a short-term contract to supply gas to Gibson Island from the Northern Territory business, and then signed a joint venture with Incitec Pivot to develop a Range gas field in the Surat basin, Queensland.

“We shipped gas from the Amadeus Basin to the Gibson Island facility for a year, after which Incitec signed an additional quantity contract with another supplier,” he said. Devaney said he is confident that Incitec Pivot will be fully committed to the joint venture scope project.

Reference:

Fertiliser prices are soaring, so why is one of Australia’s largest factories closing? (2021). ABC News. [online] 12 Nov. Available at: https://www.abc.net.au/news/rural/2021-11-13/incitec-pivot-shut-brisbane-plant-amidst-fertiliser-price-boom/100610750 [Accessed 14 Nov. 2021].

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