Agrium’s Kenai, Alaska, nitrogen facility is to continue to operate until November next year after the successful conclusion of gas supply negotiations.

The Kenai nitrogen facility produced approximately 690,000 tonnes of urea and 480,000 tonnes of net ammonia last year and Agrium says the continue operation of the facility could add between £0.15 to $0.40 per diluted share to its earnings for the additional one year period if Black Sea nitrogen sales prices ranged between $200 and $250 per tonne. On June 30 this year, the net book asset value for the nitrogen facility was $5 million.

By November this year, Agrium, a global producer and marketer of agricultural nutrients and industrial products, will operate just one ammonia plant with 650,000 tonnes of gross ammonia capacity and one urea plant with 630,000 tonnes of granular urea capacity. Annual net ammonia sales capacity will be approximately 280,000 tonnes, if both the urea and ammonia plant operate at full capacity.