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RE: Coffeyville Resources Refinery Expansion

Home Forums Coking News: DCU, Upgrader 1.Coker (registered users only) Coffeyville Resources Refinery Expansion RE: Coffeyville Resources Refinery Expansion

#7676

Charles Randall
Participant

Coffeyville is expanding crude capacity by 115 MBD of heavier crudes to max out its Coker & Nitrogen plant that is printing money these days. The petcoke is gasified to make nitrogen fertilizer and will be completed in 2006.

 

The story behind the story is that petcoke gasification into fertilizer is reaping one of the first benefits from demand destruction from the NG industry. The US Fertilizer industry @ $2.50/MMBTU Natural gas made Nitrogen fertilizer at $100/ton and ran 93% capacity, and was net exporter.  Today at $6-11/MMBTU natural gas the +$350/ton cost is too far above global market to compete and so the industry is at 53% capacity (mostly non NG fueled plants like Coffeyville operating) and a net importer.

 

This industry WAS one of the Top 5 natural gas industrial consuming markets and is good alternate for refineries to pursue since NG will likely stay above the $4.50/MMBTU required to support incremental LNG imports needed to meet NG demand (pre demand destruction levels that is). 

 

Regards

Charlie Randall

Pace Global Services

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