NEWS BULLETIN

April 18, 2005 --- Vol. 11, No. 39April 2005

Agrium extends deadline

Cook Inlet gas producers now have until May 13 to respond to a request by Agrium for additional gas to feed its Kenai nitrogen plant. Agrium extended the deadline because some of the producers asked for additional time to respond, Agrium spokeswoman Lisa Parker told Petroleum News April 18. The initial deadline was April 15.

In its March request, the company offered $3 per thousand cubic feet of gas to Cook Inlet producers, a significant jump over the historic $2 per mcf average gas price paid for delivered supply to its Kenai plant. High recent prices for nitrogen fertilizer on the world market made the higher offer possible.

Failing a new gas supply, the plant will close when its current supply contract expires on Oct. 31.


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