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EXPANDING US NITROGEN FERTILIZER PRODUCTION

Expanding US Nitrogen Fertilizer Production

Study Released October 19, 2012

Natural Gas Report - September 2012

Global fertilizer demand is rapidly increasing to accommodate growing populations, improving diets, and government policies that support the production of corn-based biofuels. Prior to 2005, high natural gas costs made it difficult for US nitrogen fertilizer producers to compete with producers located in low cost regions of the world, and resulted in the closure of several production facilities. Although domestic fertilizer output decreased, the demand for nitrogen fertilizers remained strong, and the US became increasingly dependent on imports. Today, low North American natural gas prices, coupled with high grain crop prices, are providing healthy profit margins to domestic fertilizer producers, and sparking interest in the construction of new production facilities..... Download full report.

September 2012