By Alicia Chamely
CANADIAN company Nutrien will begin a controlled shutdown of its Point Lisas plant after the National Energy Corporation (NEC) confirmed its intentions to restrict Nutrien’s port access due to a dispute of over owed port fees.
Nutrien has also cited a lack of natural gas supply.
An internal staff memo on Tuesday, stated a controlled temporary shutdown of operations would begin on October 23.
The memo stated the shutdown was in response to a dispute between Nutrien and NEC over NEC’s assertion that Nutrien was owed $7 million in retroactive port fees.
The memo read, “Over the last several weeks, Nutrien has been in dialogue with the National Energy Corporation (NEC), who has asserted that Nutrien owes several million dollars in retroactive port service fees. We dispute NEC’s position and have been actively working to resolve the matter through constructive dialogue.”
“Regrettably, NEC has now confirmed its intent to restrict Nutrien’s access to the port,” the memo continued, “With deep disappointment, this action leaves us with no choice but to begin a controlled temporary shutdown of operations effective October 23. The shutdown will remain in effect until we are able to re-establish an operating environment that is economically viable.”
In a statement posted on Nutrien’s website, the company also attributed “a lack of reliable and economic natural gas supply that has reduced the free cash flow contribution of the Trinidad Nitrogen operations over an extended period of time” as a contributor to their decision.
The staff memo noted that because of the controlled shut down “it may become necessary to implement temporary workforce adjustments, including short-term layoffs.”
The memo stated, “Our Trinidad nitrogen complex plays an important role in the local economy, and our goal is to resolve this matter with NEC. We understand this news is unsettling, and I want to acknowledge the impact it has on our entire team. Please know that we are committed to keeping you informed and supporting you through this process.”
An email was sent to Nutrien’s public relations office to confirm how much individuals would be affected and for details regarding their supply and cost of natural gas. Up to publishing time, no reply had been received.
ABOUT Nutrien
Nutrien is one of the world’s largest providers of crop inputs and services.
The company’s ammonia and urea sales volumes from Nutrien’s Trinidad operations are approximately 85 and 55 thousand tonnes per month.
