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AIDEA to assess value of Agrium plant
Wesley Loy For Petroleum News
A state lending agency plans to assess the market value of the shuttered Agrium Inc. fertilizer factory at Nikiski on Alaska’s Kenai Peninsula.
In a request for proposals, or RFP, issued Dec. 20, the Alaska Industrial Development and Export Authority said it aims to award a contract to an appraiser by early February.
The Agrium plant was long a major user of Cook Inlet natural gas as a feedstock to produce nitrogen fertilizer products. The company shut down the plant in September 2007 for lack of sufficient affordable gas.
Since then, some progress has been made to prove up additional supplies of inlet gas. Economic development boosters would like to see the Agrium plant come back to life as a source of good jobs and to serve as an industrial customer for gas producers.
The shutdown resulted in the layoff of more than 100 employees.
James Hemsath, an AIDEA deputy director, told Petroleum News there’s some chance the plant might be upgraded and restarted.
AIDEA could be asked to loan money to the venture, and an appraisal of the plant is needed for collateral purposes, he said.
Agrium, based in Calgary, is a global supplier of agricultural products.
With the recent rise in drilling for natural gas in Cook Inlet, Agrium is assessing the potential for restarting at least one of the two production trains at the Nikiski plant, the RFP said.
The plant was one of the largest of its kind in North America, and used very large volumes of gas.
Unocal built and operated the plant from 1968 to 2000, when it sold the facility to Agrium.
The plant produced ammonia and urea mostly for export to foreign markets in the Pacific region.
At closing, the plant was “properly mothballed” and has been maintained to allow for a safe restart of operations, the RFP said.
Appraisal specifics The RFP said AIDEA is seeking qualified firms to value the Agrium plant including all equipment and surrounding land and buildings.
The factory sits on 125 acres, and has its own power plant and a dock for loading cargo ships.
AIDEA estimates a budget of between $50,000 and $150,000 for the appraisal project. The appraiser is to value the plant whether sold piecemeal or intact.
Agrium will provide access to the plant and will make people available for inspection of the assets and to answer questions, the RFP said.
The appraiser will have six weeks to do the job under the AIDEA contract.
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