YARA Trinidad Limited (YTL) shuts down one of its three ammonia plants operating in the Point Lisas Industrial Estate after failure to reach an agreement with the National Gas Company “that could sustain the operation” of the plant.
In a release on Wednesday, Yara stated that at the end of the year, it will closed its Yara plant.
It stated that it operates three ammonia plants in Savonetta with the Yara plant fully owned by Yara International ASA.
Yara said the other two plants – Tringen I and Tringen II were jointly owned by Yara International ASA and National Enterprises Ltd.
The release stated that the Trinidad plant was one of Yara’s smallest ammonia plants with an annual production capacity of about 270,000 tonnes of ammonia.
It noted that this plant has a lower energy efficiency than Yara’s average.
The release stated, “Over the last three years, YTL has implemented a focused strategic response to a number of structural challenges occurring in the ammonia market.
“Following a thorough review, the company is left with no choice but to cease operating the Yara plant by December 31, 2019.”
It stated that the plant will safely be shut down in the coming weeks and thereafter will “carry out a mothballing and blinding of the asset.”
It stated, “This decision comes after several negotiating sessions with the NGC which failed to reach an agreement that could sustain the operation of the Yara Plant.”
It stated that it will start discussions with the Oilfield Workers Trade Union “to assist in the mitigation of the impact to affected employees.”
The release added that YTL managed and operated three ammonia plants and was one of the longest operating industrial sites in Point Lisas.
It stated that it exported 99 percent of its annual production to 1.3 million metric tonnes of ammonia – contribution to Trinidad and Tobago’s position as the world’s leading exporter of ammonia.