Recent Press Releases
1/24/03
Ammonia industry continues struggle with high gas prices
BATON ROUGE, LA — The Louisiana Ammonia Producers (LAP), a group representing chemical plants in the state that manufacture ammonia, has again warned the U.S. Congress of the dire emergency caused by high natural gas prices in the ammonia industry.

"High natural gas prices (currently over $5.00/mm BTU) have caused a serious and ongoing problem for LAP members with the loss of some 2,000 jobs over the last four years," said Jim Harris, spokesman for the association.

LAP lost another member when Farmland Industries in Grant Parish closed it’s plant last year eliminating 49 employees. More recently, Triad Nitrogen in Donaldsonville eliminated 70 jobs in December of last year. In 1998 there were nine LAP member companies employing more than 3,500 workers. Today, only five companies remain, employing around 1,300 workers.

Natural gas makes up 80 to 90 percent of the costs of making ammonia. More than 80 percent of the ammonia produced in Louisiana is used to make fertilizer.

Harris said LAP members are asking Congress to quickly develop a U.S. energy policy that will allow for expanded access and exploration of domestic
natural gas supplies. LAP pointed out in its letter to Congress that U.S. natural
gas production has been stagnant since 1995 in part due to a lack of access to large reserves in the Gulf of Mexico, Alaska and other areas.

"This is an emergency situation, and there is an urgent need for Congress to act if the domestic ammonia industry is to survive," Harris concluded.

The Louisiana Ammonia Producers are a group of five ammonia producing facilities in the state. Together, they account for 40 percent of the U.S. production of ammonia. LAP members employ approximately 1,300 people. LAP members include: CF Industries, Ascension Parish; IMC Global, St. James Parish; Koch Industries, Ouachita Parish; PCS Nitrogen, Ascension Parish and Triad Nitrogen, Ascension Parish.

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