Agrium Inc. has received proposals from Cook Inlet natural gas producers for additional gas to feed its Kenai nitrogen fertilizer plant, according to Agrium spokeswoman Lisa Parker.
“We did receive some proposals,” Parker told Petroleum News on May 16. “We’re in the process of evaluating them right now.”
Producers had until May 13 to respond to Agrium’s request for proposals to supply gas. Agrium extended the deadline from the initial deadline of April 15, because some of the producers asked for additional time to respond.
In the 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 the Kenai plant. The higher offer was made possible by higher nitrogen prices.
Mike Wilson, Agrium president and CEO told Petroleum News last week the future of the Kenai plant hangs on the results of the company’s RFP. If no economic supply of gas is offered, the plant will shut down on Nov. 1, when its current supply contract with Unocal expires.