By Deborah A. Kramer - USGS · By Deborah A. Kramer ... at yazoo City, MS, was not included in...

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nitrogen—2004 53. references that include a section mark (§) are found in the internet references Cited section. NITROGEN By Deborah A. Kramer Domestic tables were prepared by Oana Petrican, statistical assistant, and the world production table was prepared by Regina R. Coleman, international data coordinator. in 2004, U.S. ammonia production was 8.85 million metric tons (Mt) of contained nitrogen, about a 3% increase from production in 2003. Apparent consumption was about 2% higher than that in 2003. imports of ammonia also were about 3% higher than those in 2003, with most of the imports in 2004 coming from Canada, russia, and trinidad and tobago. About 92% of the domestically produced ammonia consumed in the United States was used in fertilizer applications. global ammonia production in 2004 of 7 Mt of contained nitrogen was about 6% higher than that in 2003. China, india, russia, and the United States were the leading producers, together accounting for about 55% of the total. Legislation and Government Programs the U.S. Department of Commerce, international trade Administration (itA) revoked its antidumping duty orders on urea from Belarus, estonia, Lithuania, romania, tajikistan, turkmenistan, and Uzbekistan because no domestic company intended to participate in the itA’s 5-year sunset review (U.S. Department of Commerce, international trade Administration, 2004). the nitrogen Solutions Fair trade Committee [a group of U.S. urea-ammonium nitrate solution (UAn) producers] filed a complaint in the U.S. Court of international trade in 2003 appealing the international trade Commission’s (itC) ruling that United States UAn producers were not injured by imports of UAn from Belarus, russia, and Ukraine. As a result, hearings were held in october 2004, and the court issued a ruling in January 2005 that upheld the itC’s final determination (U.S. Court of international trade, 2005§ ). Production industry statistics for anhydrous ammonia and derivative products were developed by the U.S. Census Bureau. A summary of the production of principal inorganic fertilizers by quarter was reported in the series MQ325B, and industrial gases (including nitrogen) were reported in the quarterly report MQ325C. in 2004, production of anhydrous ammonia (82.2% nitrogen) increased by 3% to 8.85 Mt of contained nitrogen compared with a revised figure of 8.60 Mt in 2003 (table ). of the total production, 92% was for use as a fertilizer; the remaining 8% was used in other chemical and industrial sectors (table 2). the United States remained the world’s second ranked producer and consumer of elemental and fixed types of nitrogen following China. in declining order, urea, ammonium phosphates [diammonium phosphate, monoammonium phosphate (MAP), and other ammonium phosphates], ammonium nitrate, nitric acid, and ammonium sulfate were the major downstream products produced from ammonia in the United States. their combined production was 9.2 Mt of contained nitrogen, with urea accounting for about 29% of the production (table 3). Ammonia producers in the United States operated only at about 59% of design capacity in 2004; this percentage included capacities at plants that operated during any part of the year. of the plants that operated in 2004, almost 56% of total U.S. ammonia production capacity was concentrated in the States of Louisiana (34%), oklahoma (6%), and texas (6%) owing to large reserves of feedstock natural gas. terra industries inc., Koch nitrogen Co., CF industries inc., Agrium inc., and PCS nitrogen inc., in descending order, accounted for 83% of total U.S. ammonia capacity (table 4). Henry Hub natural gas prices fluctuated between $4 to $8 per million British thermal units in 2004, averaging about $6 per million British thermal units. the continued volatility in natural gas prices was cited as the reason for closure of several ammonia facilities in the United States in 2004. in March, Mississippi Chemical Corp. permanently closed its 422,000-metric-ton-per-year (t/yr) no. ammonia unit at its triad nitrogen LLC facility in Donaldsonville, LA, along with melamine and urea production at the site. the company planned to continue to operate its no. 2 ammonia plant, with 478,000 t/yr of capacity, as swing production—operating as market conditions warrant (green Markets, 2004f). terra industries announced that it would close its Blytheville, Ar, nitrogen plant at the end of May; the plant had the capacity to produce 388,000 t/yr of ammonia and 435,000 t/yr of urea. the company planned to continue to operate the facility as a storage terminal for ammonia produced at its Verdigris, oK, plant (green Markets, 2004k). in the third quarter, Air Products and Chemicals inc. closed its 78,000-t/yr ammonia plant in Florida along with associated methanol production facilities. the company planned to purchase its ammonia and methanol requirements (Air Products and Chemicals inc., 2004§). terra industries also planned to mothball its 23,000-t/yr Beaumont, tX, ammonia plant for an indefinite period at the request of Methanex Corp., the purchaser of the ammonia. Under the 5-year agreement that terra industries had with Methanex, the company received a lump-sum payment from Methanex and a percentage of the profits, but Methanex had the right to close its Beaumont methanol plant. the ammonia plant traditionally had used hydrogen from the methanol plant in its manufacturing process, and terra industries planned to look for other hydrogen sources (green Markets, 2004j).

Transcript of By Deborah A. Kramer - USGS · By Deborah A. Kramer ... at yazoo City, MS, was not included in...

nitrogen—2004 53.�

�referencesthatincludeasectionmark(§)arefoundintheinternetreferencesCitedsection.

NitrogeN

ByDeborahA.Kramer

Domestic tables were prepared by Oana Petrican, statistical assistant, and the world production table was prepared by Regina R. Coleman, international data coordinator.

in2004,U.S.ammoniaproductionwas8.85millionmetrictons(Mt)ofcontainednitrogen,abouta3%increasefromproductionin2003.Apparentconsumptionwasabout2%higherthanthatin2003.importsofammoniaalsowereabout3%higherthanthosein2003,withmostoftheimportsin2004comingfromCanada,russia,andtrinidadandtobago.About92%ofthedomesticallyproducedammoniaconsumedintheUnitedStateswasusedinfertilizerapplications.globalammoniaproductionin2004of��7Mtofcontainednitrogenwasabout6%higherthanthatin2003.China,india,russia,andtheUnitedStatesweretheleadingproducers,togetheraccountingforabout55%ofthetotal.

Legislation and Government Programs

theU.S.DepartmentofCommerce,internationaltradeAdministration(itA)revokeditsantidumpingdutyordersonureafromBelarus,estonia,Lithuania,romania,tajikistan,turkmenistan,andUzbekistanbecausenodomesticcompanyintendedtoparticipateintheitA’s5-yearsunsetreview(U.S.DepartmentofCommerce,internationaltradeAdministration,2004).

thenitrogenSolutionsFairtradeCommittee[agroupofU.S.urea-ammoniumnitratesolution(UAn)producers]filedacomplaintintheU.S.Courtofinternationaltradein2003appealingtheinternationaltradeCommission’s(itC)rulingthatUnitedStatesUAnproducerswerenotinjuredbyimportsofUAnfromBelarus,russia,andUkraine.Asaresult,hearingswereheldinoctober2004,andthecourtissuedarulinginJanuary2005thatupheldtheitC’sfinaldetermination(U.S.Courtofinternationaltrade,2005§�).

Production

industrystatisticsforanhydrousammoniaandderivativeproductsweredevelopedbytheU.S.CensusBureau.AsummaryoftheproductionofprincipalinorganicfertilizersbyquarterwasreportedintheseriesMQ325B,andindustrialgases(includingnitrogen)werereportedinthequarterlyreportMQ325C.in2004,productionofanhydrousammonia(82.2%nitrogen)increasedby3%to8.85Mtofcontainednitrogencomparedwitharevisedfigureof8.60Mtin2003(table�).ofthetotalproduction,92%wasforuseasafertilizer;theremaining8%wasusedinotherchemicalandindustrialsectors(table2).

theUnitedStatesremainedtheworld’ssecondrankedproducerandconsumerofelementalandfixedtypesof

nitrogenfollowingChina.indecliningorder,urea,ammoniumphosphates[diammoniumphosphate,monoammoniumphosphate(MAP),andotherammoniumphosphates],ammoniumnitrate,nitricacid,andammoniumsulfatewerethemajordownstreamproductsproducedfromammoniaintheUnitedStates.theircombinedproductionwas9.�2Mtofcontainednitrogen,withureaaccountingforabout29%oftheproduction(table3).

AmmoniaproducersintheUnitedStatesoperatedonlyatabout59%ofdesigncapacityin2004;thispercentageincludedcapacitiesatplantsthatoperatedduringanypartoftheyear.oftheplantsthatoperatedin2004,almost56%oftotalU.S.ammoniaproductioncapacitywasconcentratedintheStatesofLouisiana(34%),oklahoma(�6%),andtexas(6%)owingtolargereservesoffeedstocknaturalgas.terraindustriesinc.,KochnitrogenCo.,CFindustriesinc.,Agriuminc.,andPCSnitrogeninc.,indescendingorder,accountedfor83%oftotalU.S.ammoniacapacity(table4).

HenryHubnaturalgaspricesfluctuatedbetween$4to$8permillionBritishthermalunitsin2004,averagingabout$6permillionBritishthermalunits.thecontinuedvolatilityinnaturalgaspriceswascitedasthereasonforclosureofseveralammoniafacilitiesintheUnitedStatesin2004.inMarch,MississippiChemicalCorp.permanentlyclosedits422,000-metric-ton-per-year(t/yr)no.�ammoniaunitatitstriadnitrogenLLCfacilityinDonaldsonville,LA,alongwithmelamineandureaproductionatthesite.thecompanyplannedtocontinuetooperateitsno.2ammoniaplant,with478,000t/yrofcapacity,asswingproduction—operatingasmarketconditionswarrant(greenMarkets,2004f).terraindustriesannouncedthatitwouldcloseitsBlytheville,Ar,nitrogenplantattheendofMay;theplanthadthecapacitytoproduce388,000t/yrofammoniaand435,000t/yrofurea.thecompanyplannedtocontinuetooperatethefacilityasastorageterminalforammoniaproducedatitsVerdigris,oK,plant(greenMarkets,2004k).inthethirdquarter,AirProductsandChemicalsinc.closedits78,000-t/yrammoniaplantinFloridaalongwithassociatedmethanolproductionfacilities.thecompanyplannedtopurchaseitsammoniaandmethanolrequirements(AirProductsandChemicalsinc.,2004§).

terraindustriesalsoplannedtomothballits23�,000-t/yrBeaumont,tX,ammoniaplantforanindefiniteperiodattherequestofMethanexCorp.,thepurchaseroftheammonia.Underthe5-yearagreementthatterraindustrieshadwithMethanex,thecompanyreceivedalump-sumpaymentfromMethanexandapercentageoftheprofits,butMethanexhadtherighttocloseitsBeaumontmethanolplant.theammoniaplanttraditionallyhadusedhydrogenfromthemethanolplantinitsmanufacturingprocess,andterraindustriesplannedtolookforotherhydrogensources(greenMarkets,2004j).

53.2 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

Afterfilingforbankruptcyin2003,MississippiChemicalagreedtobeacquiredbyterraindustriesforabout$268millioninDecember2004.Asaresultoftheacquisition,terraindustriesowneda50%interestinthe7�5,000-t/yrPointLisasnitrogenLtd.ammoniafacilityintrinidadandtobago.inaddition,terraindustriesacquirednitrogenmanufacturingfacilitiesinyazooCity,MS,andDonaldsonvillewithacombinedproductioncapacityof�.3millionmetrictonsperyear(Mt/yr)ofammonia(includingtheshutteredno.�plantinDonaldsonville).terraindustriesalsoownedastorageanddistributionterminalinDonaldsonvilleanda50%interestinanammoniaterminallocatednearHouston,tX(terraindustriesinc.,2004§).MississippiChemical’sno.4ammoniaplantatyazooCity,MS,wasnotincludedinterraindustries’acquisitionofthecompanyassets.Atyearend,MississippiChemicalwasattemptingtofindabuyerforthe�59,000-t/yrunitthathadbeenidlesinceJanuary2003.

inoctober,iMCglobalinc.andCropnutrition(adivisionofCargillinc.)mergedtoformanewcompany,theMosaicCo.thenewcompanyincludediMC’s508,000-t/yrammoniaplantinDonaldsonville,whichsuppliedammoniaforthecompany’sammoniumphosphatesproductionatthesamesite.

inMarch,Farmlandindustriesinc.completedthesaleofitsCoffeyville,KS,refineryandnitrogenassetstoCoffeyvilleresourcesLLC(aunitofPegasusPartnersiiLP).theammoniaplanthasthecapacitytoproduce350,000t/yr,muchofwhichwasconvertedtoUAn.

rentechinc.enteredintoanagreementwithroyster-Clarkinc.topurchaseits278,000-t/yreastDubuque,iL,ammoniaplantandconverttheplantfromnaturalgasfeedtoacoal-fedgasificationplant.rentechwouldcontinuetooperatetheplantwithnaturalgasfeedwhilecompletingtheconversion.rentechalsowouldreceiveupto$5millioningrantsfromtheStateofillinoistobeusedforthedesign,engineering,andpermittingphasesoftheplantconversion.theplantconversionwasexpectedtobecompletedbyearly2008usingrentech’sFischer-tropschgas-to-liquidssynthesisgasconversionprocess.theconversionwouldincreasetheplant’scapacityby20%andproducesurpluselectricityforsale(greenMarkets,2004d).inMarch2005,however,thetwocompaniescalledoffthesalebutagreedtocontinuetocooperateintheconversiontoacoal-fedplant.

inDecember,AgriumandUnocaloilCo.ofCalifornia(Unocal)reachedanagreementinitslong-standingdisputeovergassuppliesforAgrium’s�.25-Mt/yrKenai,AK,ammoniafacility.thesettlementestablishedagassupplyobligationfromUnocaltotheKenaifacilityuntiloctober3�,2005;Agriumwouldreceive$47millionincompensationforreducedfuturegasdeliveries,environmental,andotherliabilities,andUnocalwouldagreetosettleallthedisputedearn-outclaimsfor$22million.Unocalwasobligatedtosupplynearly�billioncubicmetersofgasatthesamepriceasthecurrentgassupplyagreementthroughoctober3�,2005.thenewgassupplyagreementwouldallowtheKenaiplanttooperateatanaveragerateof66%throughthatdate.AccordingtoAgrium,thesettlementrepresentedagainof$�05millionforthecompany.Agriumwouldreceiveanadditional$50millionfromUnocal,relatedtoanarbitrationpanelrulingearlierin2004(greenMarkets,2004a).

Environment

Hypoxiahasbecomeacontroversialenvironmentalconcernforthefertilizerindustryandanissuethatspawnedsignificantresearcheffortstodetermineitscause.Hypoxiareferstothephenomenonthathappenswherewaternearthebottomofanaffectedareacontainslessthan2partspermillionofdissolvedoxygen.Hypoxiacancausestressordeathinbottom-dwellingorganismsthatcannotmoveoutofthehypoxiczone.Somestudiespostulatedthatnitraterunofffromfertilizersistheprincipalcauseofhypoxia,whileotherscitedothercausesforthehypoxiczone.

thesecond“nationalCoastalConditionreport”(nCCrii)waspublishedin2004.thereportisacomprehensivereportontheconditionofthenation’sestuarinewatersandcoastalfisheriesandisacollaborativeeffortbetweentheU.S.environmentalProtectionAgency,thenationaloceanicandAtmosphericAdministration,theU.S.FishandWildlifeService,andtheU.S.geologicalSurveyincooperationwithagenciesrepresentingStatesandtribes.thisreportexaminedseveralavailabledatasetsfromdifferentagenciesandareasofthecountryandsummarizedthemtopresentabroadbaselinepictureoftheconditionofcoastalwatersfor�997to2000.Fiveprimaryindexeswerecreatedusingdataavailablefromnationalcoastalprograms—benthicindex,coastalhabitatindex,fishtissuecontaminantsindex,sedimentqualityindex,andwaterqualityindex.thewaterqualityindexismadeupoffiveindicators—chlorophyll-a,dissolvedoxygen,nitrogen,phosphorus,andwaterclarity.oneofthemajorfindingsofthestudyperiodwasthattheindicatorsthatgenerallyshowedthebestconditionweretwooftheindividualcomponentsofwaterquality—dissolvedinorganicnitrogenanddissolvedoxygen(U.S.environmentalProtectionAgency,2004,p.eS.�-eS.�0).

AreportfromtheUnitednationsenvironmentalProgramme(2004§),claimedthatthenumberofdeadzonesintheworld’soceansisincreasing.Accordingtothereport,oxygen-starvedareasinbaysandcoastalwatershavebeenexpandingsincethe�960s,andthenumberofknownlocationsaroundtheworldhasdoubledsince�990.Althoughmanyofthesesitesaresmallcoastalbaysandestuaries,seabedareasinmarginalseasofupto70,000squarekilometersalsowereaffected.increasedflowsofnitrogenfromagriculturalrunoffandthedepositionincoastalareasofairbornenitrogencompoundsfromfossil-fuelburningstimulatedbloomsofalgaeinthesewaters.Althoughthedeadzoneshaddifferentcauses,thereportrecommendedsuchmethodsasprecisionagricultureandplantingnitrogen-fixingtreesandcovercropsasstepstoreduceregionalandglobalimpactsofnitrogenrunoff.

Consumption

in2004,apparentconsumptionofammoniaof�4.3Mtofcontainednitrogenwasabout2%higherthanthatin2003.Apparentconsumptioniscalculatedastheproductionplusimportsminusexports,adjustedtoreflectanychangesinstocks.ConsumptionofnitrogenfertilizersintheUnitedStatesforthe2004cropyear(endingJune30,2004)islistedintable5.Consumptionof�2.0Mtofcontainednitrogenwasabout

nitrogen—2004 53.3

8%higherthanthatof2003.nitrogensolutions,mostlyUAncontaining29.8%to29.9%nitrogen,weretheprincipalfertilizerproduct,representing25%offertilizerconsumption.Ammoniarepresented25%,andurea(45.9%nitrogen)constituted20%offertilizerconsumptionduringthe2004cropyear.Ammoniumnitratecontaining33.9%nitrogenconstituted4%of2004nitrogenfertilizerconsumption,andfertilizerconsumptionofammoniumsulfate,basedonnitrogencontent,was2%ofthetotalU.S.nitrogen-basedfertilizermarket.

Stocks

Stocksofammoniaatyearend2004were274,000metrictons(t),anincreaseof39%fromcomparablestocksatyearend2003,accordingtodatapublishedbytheU.S.CensusBureau(table6).

Transportation

Ammoniawastransportedbyrefrigeratedbarge,rail,pipeline,andtruck.threecompaniesserved��Stateswith5,090kilometers(km)ofpipelinesand4,800kmofriverbargetransport;railandtruckwereusedprimarilyforinterstateorlocaldelivery.

ValeroL.P.operatedthegulfCentralammoniapipeline.the3,200-kmpipelineoriginatesintheLouisianaDeltaareaandhasaccesstothreemarineterminals.itmovesnorththroughLouisianaandArkansasintoMissouri,whereitsplitsatHermann,Mo,onebranchgoingeastintoillinoisandindianaandtheotherbranchcontinuingnorthintoiowaandthenturningwestintonebraska.thecapacityofthispipelinewasabout2Mt/yr,withastoragecapacityofmorethan�Mt.CFindustriesandCargillFertilizerinc.jointlyoperatedthe�35-kmtampaBayPipeline(tBP)system.thetBPmovednitrogencompoundsandammoniumphosphateforfertilizerproducersinHillsboroughandPolkCounties,FL.MagellanMidstreamPartnersLP’s�,750-kmammoniapipeline,whichoriginatesatproductionfacilitiesinBorger,tX,Verdigrisandenid,oK,andterminatesinMankato,Mn,hasamaximumdeliverycapacityofabout820,000t/yr.ittransportsammoniato�3deliverypointsalongthepipelinesystemandhasastoragecapacityofabout500,000t.

innovember,Valero,KanebServicesLLC,andKanebPipeLinePartners,L.P.announcedthattheyhadadefinitiveagreementtomergeValeroandKanebPartners.thetotalvalueofthetransactionwasestimatedtobe$2.8billion,anditwasexpectedtocloseinthefirstquarterof2005.theassetsofthecombinedpartnership,whichwillretainthenameValeroL.P.,includeapproximately�5,600kmofpipelinethatincludesa3,200-kmanhydrousammoniapipeline(greenMarkets,2004b).

Prices

Midyearandyearendpricesfornitrogenmaterialsarelistedintable7.normally,ammoniapricechangesfollowthoseofnaturalgas.Duringthefirsthalfof2004,thispricerelationshipfolloweditsnormalpattern;however,widenaturalgaspricefluctuationsinthesecondhalfof2004didnotleadtocorrespondingfluctuationsinammoniaprices(figure�).

Averageammoniapricesfellthroughthefirstquarterof2004toreachthelowestleveloftheyearinAprilat$2�5pershortton($237permetricton).Pricesincreasedslightlyandleveledoffat$270pershortton($298permetricton)inJune.inoctober,theaverageammoniapricebegantoriseandendedtheyearat$285pershortton($3�4permetricton).

theaverageureapricefellfrom$�94pershortton($2�4permetricton)throughMaywhenitreacheditslowestlevelfortheyearat$�65pershortton($�82permetricton).Fromthatpoint,pricesincreasedsteadilytoayearendaveragepriceof$228pershortton($25�permetricton).

Ammoniumnitratepricesfellslightlyfrom$�93pershortton($2�3permetricton)to$�84pershortton($203permetricton)inMaybeforeclimbingto$203pershortton($224permetricton)byyearend.Ammoniumsulfatepricesrosethroughout2004,beginningtheyearat$�38pershortton($�52permetricton)andincreasingto$�85pershortton($204permetricton)byyearend.

Foreign Trade

Ammoniaexportswereabout5%lowerthanthosein2003,andbecauseofhigherprices,thevaluesincreasedby26%(table8).therepublicofKoreacontinuedtobetheleadingdestinationforU.S.exportsofammonia,accountingfor83%ofthetotal.MostofthematerialshippedtotherepublicofKoreawasproducedattheAgriumplantinAlaska.

Ammoniaimportswere3%higherthanthosein2003(table9).trinidadandtobago(54%)continuedtobetheleadingimportsource.Canada(�8%)andrussia(�2%)weretheremainingsignificantimportsources.

tables�0and��listtradeofothernitrogenmaterialsandincludeinformationonprincipalsourceordestinationcountries.exportsofnitrogenmaterialsdeclinedin2004,withtheexceptionofammoniumnitrateandMAP.Changesinimportsofnitrogenmaterialsweremixedcomparedwithimportsin2003.

World Review

Anhydrousammoniaandothernitrogenmaterialswereproducedinmorethan80countries.globalammoniaproductionin2004of��7Mtwasabout6%higherthanthatof2003(table�2).Asignificantportionofthisincreaseresultedfroma3.3-MtincreaseinproductionfromChina,which,with30%oftotalproduction,wastheleadingworldproducerofammonia.Asiacontributed48%oftotalworldammoniaproduction,andtheCommonwealthofindependentStates(CiS),estonia,andLithuaniaproduced�4%oftheglobaltotal.northAmericarepresented�2%ofthetotal;Westerneurope,9%;CentralAmericaandSouthAmerica,6%;theMiddleeast,5%;andAfrica,easterneurope,andoceaniacontributedtheremaining6%.

in2004,worldammoniaexportsof�4.6Mtofcontainednitrogenwereabout5%higherthanthosein2003.russia(25%),trinidadandtobago(24%),Ukraine(�0%),indonesia(8%),andCanada(7%)accountedfor74%oftheworldexporttotal.theUnitedStatesimported4�%ofglobalammonia

53.4 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

trade,followedbyAsia(24%)andWesterneurope(20%)(internationalFertilizerindustryAssociation,2005a).

in2004,worldureaproductionincreasedby7.5%to56.7Mtofcontainednitrogen.Worldwide,ureaexportsfellby�2%to0.794Mtofcontainednitrogen.Chinaandindia,thetwoleadingproducingcountries,accountedfor50%ofworldproduction;productioninChinaincreasedby�5%,andproductioninindiaincreasedby3%comparedwiththoseof2003.theUnitedStatesandCanadaproducedabout9%ofthetotal.theCiS,estonia,andLithuaniaexportedthelargestquantityofureawith29%ofthetotal.theMiddleeastaccountedfor25%oftotalexports;Asia,�9%;northAmerica,9%;CentralAmericaandSouthAmerica,7%;easterneuropeandWesterneurope,4%each;andAfrica,2%.Asiaaccountedfor26%ofglobalureaimports;northAmerica,23%;CentralAmericaandSouthAmerica,�6%;Westerneurope,�2%;andAfrica,7%;andtheMiddleeastandoceania,6%each(internationalFertilizerindustryAssociation,2005b).theabovepercentagesfortradeinammoniaandureareflectmaterialthatisshippedintraregionaswellasmaterialthatisshippedamongregions;forexample,materialshippedfromCanadatotheUnitedStatesisincludedinthenorthAmericantradeshipments.

European Union.—theadditionof�0membercountriesintotheeuropeanUnion(eU)inMayaffectedantidumpingdutiesthathadbeeninplaceforvariousnitrogenproductssoldfromBelarus,russia,andUkraineintotheeU.thenewmembercountries,knownastheeU-�0,wereCyprus,Czechrepublic,estonia,Hungary,Latvia,Lithuania,Malta,Poland,Slovakia,andSlovenia.onMay�,thefollowingeUantidumpingdutieswereremoved:the€��.45dutyonureafromestonia,the€3.98dutyonUAnandthe€�0.05dutyonureafromLithuania,andthe€20.65to€26.9�dutyonammoniumnitrateandthe€�9.00to€22.00dutyonUAnfromPoland(FertilizerWeek,2004v).

inMay,theeuropeanCommissiondecidedthattheeU-�0couldimport50%oftheirammoniumnitraterequirementsfromrussiaandUkrainefreeofantidumpingdutiesforaperiodof6monthsfromMay2004;thisperiodwaslaterextendedto�year.FortheremainderoftheeU,theantidumpingdutiesremainedat€47.07forammoniumnitratefromrussiaand€33.25forammoniumnitratefromUkraine(FertilizerWeek,2004c).

Australia.—theWesternAustraliagovernmentawardedtherightstothelandfortheDampiernitrogenProjecttotheconsortiumofPlentyriverCorp.,theissPty.,andUhdegmbH.theconsortiumsignedanagreementwithDynonobelPacificLtd.tobecomeapartnerintheproject;Dynonobelproducedlow-densityammoniumnitrateforuseinexplosives.Underthenewdevelopmentagreement,thesizeoftheoriginalprojecthaschanged.insteadofa2,300-metric-ton-per-day(t/d)ammoniaplantanda3,500-t/dureaplant,thecomplexwillconsistofa2,300-t/dammoniaplant,a�,750-t/dureaplant,anda235,000-t/yrammoniumnitrateplant.thethreecompaniestogetherwilloperatetheammoniaplant,Plentyriverandtheisswilloperatetheureaplant,andDynonobelwilloperatetheammoniumnitrateplant.Dynonobel’sshareoftheammoniaproductionwillbeabout400,000t/yr,withtheremaindergoingtoPlentyriverandtheissforureaproduction.Feasibilitystudiesandfinancingfortheplantswereexpectedtobecompletedbythesecondquarterof2005(FertilizerWeek,2004p).

Bolivia.—inSeptember,China’sSichuanLutianhuaCo.Ltd.,ChinaChengdaChemicalengineeringCorp.,andBolivia’siiSA-tumpargroupannouncedthattheywouldconstructanammonia-ureacomplexinPuertoSuarez,Bolivia.theproductioncapacityoftheprojectwillbe�80,000t/yrofammoniaand300,000t/yrofurea.the$�60millionprojectwillbeowned60%byLutianhua,30%byChengdaChemical,and�0%byiiSA-tumpar.Althoughthecompaniesbeganafeasibilitystudyontheproject,notimetablewassetforconstruction(FertilizerWeek,2004j).

Brazil.—FertilizantesFosfatadosS.A.Fosfertilannouncedthatitwouldbuilda$450millionammonia-ureacomplexinBrazil,buthadnotchosenthelocation.thecompanywasinvestigatingthreesitesforthe800,000-t/yrammoniaand800,000-t/yrgranularureaplants—PaulineainSaoPauloState,tresLagoasinMatogrossodoSulState,andUberabainMinasgeraisState.naturalgascostsateachofthethreesiteswereestimatedtobetoohightomakeproductionfromthefacilitycompetitivewithimports,butFosfertilhopedthatoneofthelocationscouldbecomeeconomicallycompetitivebecauseofrecentchangesinBrazil’snaturalgasindustry(nitrogen&Methanol,2004a).

Bulgaria.—AlthoughAgropolychimJSCcompletedenergy-savingsprogramsatitsammoniaandnitricacidplantinDevnyain2003,someofitsotherplannedprojectshavebeenhampered.AgropolychimhadplannedtomoveaureaplantfromChimcoAD’soperationsatVratsatoDevnyatoreduceAgropolychim’sureapurchasesforitsUAnplant,butChimcoannouncedthatitwouldmovetheureaplanttotheUnitedArabemiratesinstead(FertilizerWeek,2004m).

inDecember,theVratsadistrictcourtruledthatChimcowasinsolventandopenedbankruptcyproceedings.theproceedingsweresupposedtobecompletedbyJune2005,butChimco’sownershipwasuncertain.iBetradeCorp.,aU.S.companythatpurchasedthecompanyin200�,filedacasewithBulgaria’sSupremeCassationCourttorecovera7�%stakeinChimco.thecourthadearlierconvictedapreviousmanagerofiBetradeofillegaltransferofiBetradeassetstotwooffshorecompanies.Meanwhile,asubsidiaryofitaly’sindagroSA,hasrentedallChimco’sproductionfacilitiesfor�year(Sofiaecho.com,2004§).

Chile.—SociedadQuímicayMineradeChileS.A.(SQM)announcedplanstoinvest$�45millionduringthenext3yearstoincreaseproductioncapacityforiodineandpotassiumandsodiumnitrates.SQMplannedtoincreasenitratescapacityto�.3Mt/yrfrom950,000t/yr.AnewpotassiumnitraterecoveryfacilitywillbeinstalledatSQM’snuevaVictoriafacilitytoprocessnitratesaltsgeneratedbyincreasediodineproductionatthefacility.Anew250,000-t/yrpotassiumnitrategranulationfacilitywillbebuilt,butSQMhadnotselectedasiteforthisfacility(FertilizerWeek,2004t).

onSeptember30,ACFMineraS.A.,the50%-ownerandoperatoroftheAguasBlancasiodine,potassiumnitrate,andsodiumnitratemine,formallybreacheditscontractualcommitmenttofundandcompleteanexpansionatthemine,andinoctober,AtacamaMineralsCorp.tookcontroloftheboardoftheChileanoperatingsubsidiary.AtacamaMineralsthenenteredintoaformalagreementwithACFtoacquireitsinterest

nitrogen—2004 53.5

inAguasBlancasfor$��.2milliontobepaiduponclosing,followedbyafurtherpaymentof$4.5millionpayablewithin�2monthsofclosing.ClosingwasscheduledforApril2005(AtacamaMineralsCorp.,2005§).

inJanuary,explosivesmanufacturerenaexS.A.purchasedanammonia-ureacomplexfromtheliquidatorofirishFertilizerindustriesLtd.’sequipment;irishFertilizerindustriesclosedin2002.enaexhadplannedtoinstallthe530,000-t/yrammoniaplantand400,000-t/yrureaplantinChiletoproducematerialforexporttotheU.S.market,butthegovernmentofArgentinaannouncedthatitwoulddecreasenaturalgasexportstoChiletoconservesuppliesfordomesticuse.Atyearend,enaexwasconsideringanumberofotherlocationsfortheplantincludingBrazil,Columbia,Peru,andtrinidadandtobago(FertilizerWeek,2004b).

China.—Chinacontinuedtoplanandconstructnewammoniaandureaplantsusingcoalgasificationtechnologyratherthanusingnaphthaasafeedmaterial.ShanxiJinfengCoalChemicalCo.beganconstructionofa360,000-t/yrammoniaplantanda520,000-t/yrureaplantbasedoncoalgasification.thecomplexwasestimatedtocost$��0million.theQujingmunicipalgovernmentandyunnanPetrochemicalgroupagreedtobuilda500,000-t/yrammoniaplantinQujingCity,yunnan(AsiaFertilizer&AgronomicBulletin,2004).

LiaoningHuajinChemical(group)Corp.beganconstructionofanammonia-ureacomplexinKuche,Xinjiang.thecompanyreceivedgovernmentalapprovalfora300,000-t/yrammoniaplantanda520,000-t/yrureaplant.thecomplexwasscheduledtobeginproductioninAugust2005(AsianChemicalnews,2004).

Egypt.—germany’sUhdewasawardedcontractstoconstructthreeammonia-ureacomplexesinegypt.inJanuary,thecompanywasawardedcontractsfromegyptianFertilizerCo.(eFC)andAlexandriaFertilizersCo.(AlexFert).eachcomplexhascapacitiesof�,200t/dofammoniaand�,925t/dofurea.theammoniaplantswillbebasedonUhde’sproprietaryammoniaprocess,whiletheureaplantswillbebuiltaccordingtonetherlands-basedStamicarbon’s(aunitofKoninklijkeDSMn.V.)synthesisandgranulationtechnology.theeFCcomplexwillbeatAinSukhna,andtheAlexFertcomplex,atAbuQir.Bothwerescheduledtostartproductioninlate2006(FertilizerWeek,2004y).inJune,HelwanFertilizerCo.(aunitofelnasrCokeandChemicalCo.)alsoawardedUhdeacontracttoconstructanammonia-ureacomplex.thecontractwasforanammonia-ureacomplexwithacapacityof�,200t/dofammoniaand�,925t/dofurea.the$302millionto$387millioncomplexwillbelocatedinHelwanandwasscheduledtostartproductioninmid-2007(FertilizerWeek,2004f).inDecember,Uhdewonitsfourthcontracttoconstructanammonia-ureacomplex.thiscontractwasforacomplexidenticalinsizetotheaforementionedforAlMansoraFertilizerCo.,whichwasaventuretobeestablishedbystate-ownedelDeltaCo.forFertilizerandChemicalindustries.thenewfirmwasexpectedtostartupin2007-08(FertilizerWeek,2004x).

Georgia.—russiangascompanyiteraHoldingsLtd.plannedtoconstructa�.0-Mt/yrureaplantineitherBatumiorPoti,whichareportsontheBlackSea.thenewplantwaspartofitera’sinvestmentsingeorgia’ssolefertilizerproducer

rustaviAzot;iterapurchased90%ownershipofrustaviAzotin2002.thecostofthenewplantwasestimatedtobe$250million,butnotimetablewasestablishedforconstruction(FertilizerWeek,2004i).

India.—indianFarmersFertiliserCooperativeLtd(iFFCo)announcedplanstoexpanditsfourexistingureaplantsatPhulpurandAonla,UttarPradesh.thecompanyplannedtoexpandcapacityatitsPhulpur-i,Aonla-i,andAonla-iiunitsto3,000t/deachfrom2,620t/dandexpandcapacityatitsPhulpur-iiunitto2,080t/dfrom�,670t/d.theseexpansions,costing$�.4million,wouldbringiFFCo’stotalureaproductioncapacityto4.2Mt/yr.inaddition,theprojectwillincludeswitchingPhulpur’splantfromnaptha-basedfeedstocktoliquefiednaturalgas,whichwasexpectedtoreduceproductioncosts.theexpansionwasscheduledtobecompletedbytheendof2006(FertilizerWeek,2004g).

Iran.—inApril,nationalPetrochemicalCo.(nPC)awardeda$237millioncontracttoaconsortiumofJapan’stoyoengineeringCorp.andChiyodaCorp.andiran’sPetrochemicalsindustriesDesignandengineeringCo.toprovideengineering,procurement,andequipmentforitssecondammonia-ureacomplexinBandarAssaluyeh.thecomplexwillhaveadesigncapacityof2,050t/dofammoniaand3,250t/dofureaandwasscheduledforcompletionbytheendof2004(FertilizerWeek,2004u).

nPCcanceledplanstoconstructa500,000-t/yrammoniaplantonKhargisland.theconstructionwascanceledbecauseofpotentialproblemsintegratingtheammoniaplantwithaproposedmethanolplantatthesamesite(nitrogen&Methanol,2004b).

Japan.—inMay,ShowaDenkoK.K.begancommercialproductionofammoniausingwasteplasticatthecompany’sKawasakiplant.Approximately�95t/dofcollectedwasteplasticwasprocessedinto�75t/dofammoniaandotherliquidproducts.thewasterecyclingprojectbeganinApril2003(ShowaDenkoK.K.,2004§).

Lithuania.—ABAchemaplannedtoconstructa�,500-t/dammoniaplantinJonavatocomeonstreambymid-2006.thenewplantwillraiseAchema’stotalammoniaproductioncapacitytoslightlymorethan�Mt/yr.outputfromthenewplantwasexpectedtobeusedtomakeammoniumnitrateandcalciumammoniumnitrateatthesamesite(FertilizerWeek,2004a).

Oman.—inSeptember,SoharinternationalUrea&ChemicalindustriesS.A.o.C.awardeda$500millioncontracttoJapan’sMitsubishiHeavyindustriesLtd.toconstructanammonia-ureacomplexatSohar.thecomplexwillincludea2,000-t/dammoniaplantanda3,500-t/dureaproductionandgranulationplant,whicharescheduledtobegincommercialoperationinthefirstquarterof2008.theplantswilluseHaldortopsøeA/SofDenmark’sammoniaproductionprocess,SnamprogettiS.p.A.ofitaly’sureasynthesistechnology,andyaraFertilizertechnologyB.V.ofBelgium’sureagranulationtechnology(FertilizerWeek,2004s).

Poland.—Afterafinalprivatizationplancouldnotbeagreeduponbythecountry’sfourfertilizerproducersin2003,anewplanwasdevelopedandapprovedin2004.Underthenewplan,Poland’sstate-ownedfuelcompanynaftaPolskaS.A.plannedtosellthefourcompaniesseparatelyinsteadofasoneunitas

53.6 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

wasoriginallyplanned.UnderPolishlaw,�5%oftheshareswillbeallottedtoemployees,�0%to�2%tothestate,andtheremainderwillbesold.PolskiKoncernnaftowyorLenS.A.,oneofthecountry’sfuelandchemicalproducers,signedaletterofintenttopurchasesharesoftwoofthefour—ZakładyAzotowe“Kędzierzyn”S.A.andZakładyAzotowewtarnowie-MościcachS.A.theremainingtwo—ZakładyAzotowe“Police”S.A.andZakładyAzotowe“Pulawy”S.A.—werenotprivatizedbyyearend(FertilizerWeek,2004k).

Qatar.—QatarFertiliserCo.(QAFCo)inaugurateditsnewammonia-ureacomplex,QAFCoiV,inApril.theQAFCoiVplanthadthecapacitytoproduce2,000t/dofammoniaand3,500t/dofurea.the$550millionQAFCoiVexpansionbroughtQAFCo’stotalproductioncapacityatMasaieedto2.0Mt/yrofammoniaand2.8Mt/yrofurea.QAFCoisowned75%byQatarPetroleumand25%byyarainternationalASA.thecompanywasalsocompletinganexpansiontoitsQAFCoiiiureaplantthatwouldbringthecompany’stotalgranularureacapacityto6,500t/d;thisexpansionwasexpectedtobecompletedbymid-2005(FertilizerWeek,2004q).

Romania.—inJuly,Austria’soMVAgacquiredthegovernment’s5�%ownershipofoilandgasproducerSnPPetromS.A.for$�.83billion.Petrom’ssubsidiaryDoljchimhasthecapacitytoproduce600,000t/yrofammoniaand400,000t/yrofureaaswellasotherfertilizerproducts(FertilizerWeek,2004n).

Russia.—inApril,russia’sMDMgroupwasdissolvedanditsmanagementfunctionwastransferredtoitsholdingcompanies,oneofwhichwaseuroChem,whichownsfivefertilizerplantsinrussaandoneinLithuania.eurochemplannedtospend$207millionin2004toupgradeitsfertilizeroperations.Amongtheupgradeswasaninvestmentof$27millionatnovonoskovsktomodernizeandincreasecapacityatoneofitsammoniaunitsto�.65Mt/yrfrom�.36Mt/yrandincreaseureaproductioncapacityto�,200t/dfrom750t/d.Atnevinnomyssk,euroChemplannedtomodernizeitsureaunittoincreasecapacityby90t/dtobringthetotalcapacityatthesiteto740,000t/yr(FertilizerWeek,2004d).euroChemannouncedlaterin2004thatitwouldspend$�7milliontoincreaseammoniacapacityatnevinnomysskto�,650t/dfrom�,450t/dbytheendof2005.

Serbia and Montenegro.—theSwissfirmAllimmoHoldingS.A.reportedlypurchasedSerbia’sAzotaraSuboticafertilizercomplexfor$9.97million.theplanthasbeenidlesinceMay2003,butinvestmentsbythenewownerwereexpectedtoallowtheplanttoreopenbymid-2005(FertilizerWeek,2004l).

Trinidad and Tobago.—nitrogen2000Unlimited’s�,850-t/dammoniaplantwascompletedinAugustandinauguratedattheendofoctober.the$322millionplantwascompleted5monthsaheadofscheduleandusestheKelloggadvancedammoniaprocessforammoniaproduction.

inFebruary,Kochnitrogenacquiredanadditional�5%ownershipofCaribbeannitrogenCo.’s�,850-t/dammoniaplantinPointLisasaswellastherightstomarket�00%oftheplant’sammoniaproduction.KochnitrogenpurchasedDukeenergyCorp.’sownership,tobringitstotalto25%.inaddition,Kochnitrogenhasanownershipstakeandlong-termmarketingrightsinnitrogen2000(greenMarkets,2004e).

PotashCorporationofSaskatchewaninc.plannedtoexpanditsammoniaproductioncapacityintrinidadby�32,000t/yratacostof$30million.Morethanone-halftheadditionalcapacitywasexpectedtobeonstreaminthefirstquarterof2005;theremainderwasscheduledforthethirdquarter.theincreasewouldbringthetotalammoniacapacityattheplantto2.23Mt/yr;ureacapacityattheplantwas670,000t/yr(greenMarkets,2004i).

Anewconsortiumannouncedthatitwouldconstructa$700millionammonia-urea-melaminecomplexintrinidad,beginninginJune2005.theconsortium,knownasCaribbeanPetrochemicalManufacturingCo.,consistedofCLFinancialLtd.(70%)andMAnFerrostaalAgofgermany(30%).BothofthesecompaniesalreadyownedportionsofCaribbeannitrogenandnitrogen2000.Althoughnoplantsizewasdetermined,analystsestimatedthattheplantwouldbeaboutthesamesizeastheotherrecentlyconstructedplants—�,850t/d.Plantconstructionwouldrequireabout2years(greenMarkets,2004g).

Turkey.—inearly2004,theturkishPrivatizationAgencysoldtwoofthefourfertilizersubsidiariesoftürkiyegübreSanayii(tügsas)—gemlikgübreSanayiA.Ş.,andİgSAİ-İstanbulgübreSanyiA.Ş.gemlikwassoldtocoalimportingcompanyyılyakA.Ş.for$83million,andİgSAŞwassoldtoplasticsmanufactureryildizA.Ş.for$�00million.

Turkmenistan.—State-ownedturkmendokunkhimiya’snewammoniaandureaprojectattedženwascompletedbytheendof2004.Capacitiesatthenewplantswere600-t/dofammoniaand�,050-t/dofurea.thiswouldincreaseturkmenistan’stotalureacapacityto750,000t/yrandwouldendthecountry’sdependenceonrussiaforureaimports(FertilizerWeek,2004w).

Ukraine.—innovember,theStatePropertyFundsold49%ownershipofAzotSeverodonetsktothefounderandpresidentofiBetrade;ownershipoftherestofthecompanyremainedwiththeStatePropertyFund.Severodonetskhadthecapacitytoproduce990,000t/yrofammonia,590,000t/yrofurea,and450,000t/yrofammoniumnitrate(FertilizerWeek,2004r).

Afteraninvestigationthatbeganin2003,Ukraineliftedrestrictionsonimportsofammoniumnitratefromrussia.Ammoniumnitrateimportshadbeenmonitoredfor�yearpriortothedecision,andafterthe�-yearperiod,Ukraine’sMinistryofeconomicsdeterminedthatrussianimportshadnotdamagedtheUkrainianproducers(FertilizerWeek,2004e).

United Arab Emirates.—AustralianfertilizercompanyincitecPivotLtd.plannedtoconductadetailedfeasibilitystudyfortheconstructionofanammonia-ureacomplexinBrunei.thefeasibilitystudy,tobeundertakenbyincitecPivottogetherwithitsequalpartners,MitsubishiCorp.andWestSideLtd.,willcoversuchissuesasgassupply,thecostsofutilitiesandinfrastructure,andanenvironmentalassessment.theproposedplantwouldhaveacapacityof�.2Mt/yrofureaandwouldbethelargestureamanufacturingoperationinAsia.theprojectwasexpectedtocostabout$600millionandtake3yearstobuild.incitecPivotwouldhavethemajorityofftakerightsandwouldmaintainthecomplexforthejointventure(FertilizerWeek,2004h).

Vietnam.—thePhuMyprilledureaplant,operatedbyVietnamoilandgasCorp.,cameonstreaminSeptember.

nitrogen—2004 53.7

technicalproblemsatstartuplimitedtheplant’sproductiontoabout75%ofits740,000-t/yrcapacity,butthesewereovercomebyyearend.thePhuMyplant,alongwithtwootherureaplantsthatwerescheduledtobecompletedbymid-2006,wouldenableVietnamtobeself-sufficientinurea(FertilizerWeek,2004o).

Current Research and Technology

glotell™,anadditivetoanhydrousammoniadesignedtodeterthievesanddetectleaks,reachedthecommercialmarketinSeptember.theproduct,developedatSouthernillinoisUniversityatCarbondaleandmanufacturedbyroyster-Clark,ismarketedasanorganicnontoxicadditivetoanhydrousammoniathat,whentheammoniaisexposedtotheenvironment,turnsanythingtouchedbytheammoniafluorescentpink.itsprimarypurposeistodeterthetheftofanhydrousammoniaformethamphetamineproductionbystainingpinkthemethamphetamineandalltheequipmentusedinitsmanufacture.thevisiblestainwouldremainforatleast72hours—possiblyaslongas7days—andminutequantitieswouldbedetectableunderultravioletlight.Accordingtoroyster-Clark,glotell™wouldaddabout$9pershortton($8.�5permetricton)tothecostofammoniathatistreated(greenMarkets,2004c).inaddition,anotherpotentialadditivedevelopedatiowaStateUniversitywasundergoingfinaltestingatyearend,andnewyorkhasapprovedastudyofferroceneasapotentialadditiveforanhydrousammonia.

AresearchteamatCornellUniversityhassucceededinconvertingnitrogenintoammoniausingalong-predictedprocessthathaschallengedscientistsfordecades.theachievementinvolvesusingazirconiummetalcomplextoaddhydrogenatomstothenitrogenmoleculeandconvertittoammonia,withouttheneedforhightemperaturesorhighpressure.theteamwasabletobreakthenitrogenmolecule’satomicbondbyusingzirconiuminasolubleformat45°Candtoaddhydrogenatomstoaso-calleddinitrogenbridge.Completefixationtoammoniawasachievedat85°C.UnlikethetraditionalHaber-Boschprocess,thenewprocessdoesnotuseacatalyst.insteadthezirconiummakesonlyoneammoniamoleculeatatime,notvastnumbersasinanindustrialprocess.theresearchersdonotbelievethattheHaber-Boschprocesscouldbereplaced,butthenewprocessmaybeusefulinmakingvalue-addednitrogenchemicals,suchashydrazinesforrocketfuelsorfinechemicalsfordrugsynthesisordyes(CornellUniversity,2004§).

theU.S.Departmentofenergy(Doe)awardedPeabodyenergyCorp.’sMustangenergyprojecta$�9.7millionCleanCoalPowerinitiativegrantfordemonstratingtechnologytoachieveultralowemissionsatitsproposed300megawattgeneratingstationneargrants,nM.Underthegrant,PeabodywouldcollaboratewithAirborneCleanenergyLLC,VeoliaWaternorthAmerica(asubsidiaryofVeoliaenvironnement),andiconConstructionServicesLtd.inacommercial-scaledemonstrationoftheAirborneProcess™scrubber,regeneration,andfertilizerproductionsystems.thegrantwouldbeusedtocreateacommercialscaledemonstrationofproprietarytechnologythatoperatesinamannersimilartoatraditionalscrubbersystem.thesystemwillusesodiumbicarbonateinthe

scrubberandwasexpectedtoremove99.5%ofsulfurdioxide,98%ofnitrogenoxide,and90%ofmercury.Byproductsfromthescrubbingprocess—nitrogenandsulfur—wouldbeusedtocreategranularfertilizer.theMustangdemonstrationwouldbetheleadingapplicationoftheAirbornetechnologytodate(greenMarkets,2004h).

Outlook

AccordingtotheU.S.DepartmentofAgriculture’s(USDA)nationalAgriculturalStatisticalService(2005§),plantedcornareain2005wasestimatedtobe32.9millionhectares(Mha),about0.6%higherthanthatin2004.ifthisestimateiscorrect,plantedcornareawouldbethelargestsince�985.expectedareaincreasedfromthatin2004throughoutmuchoftheCornBeltandsoutherngreatPlains;however,growersinmostStatesintheMississippiDelta,Southeast,andnortherngreatPlainsintendedtodecreasetheircornacreageasproducersswitchedtoothermoreprofitablecropsbecauseoflowcornpricesandhighfuelandfertilizercosts.Withthese2005projections,nitrogendemandbythefertilizerindustryisexpectedtobeslightlyhigherthanthatin2004.

Accordingtolong-termprojectionsbytheUSDA’seconomicresearchService(2005§),projectedplantingsfortheeightmajorfieldcropsintheUnitedStateswillincreaseslowly,fromalowof�00Mhatonearly�02Mhaby20�4(figure2).yieldincreasesalsowereprojectedtocontributetoproductiongains,limitingpriceincreasesandtherebyreducingtheneedformorelandtobeplanted.Corn,soybeans,andwheatwouldaccountforabout87%ofareaplantedfortheeightmajorfieldcrops.Duringthe�0-yearperiod,thecropmixwasexpectedtoshifttocornandawayfromsoybeans.Cornplantedareawasprojectedtorisegraduallyasincreasingexportsanddomesticdemandleadtorisingpricesandnetreturns.Domesticcornusewasprojectedtogrowthroughouttheperiod,particularlyforfeeduseandethanol.FeedandresidualuseofcornwouldriseastheU.S.livestocksectorgrowsinresponsetoincreasesindomesticdemandforandexportsofbeef,pork,andpoultry.AnexpandingdomesticeconomywouldincreasetotalmeatconsumptionintheUnitedStates.inaddition,asincomesgrowintherestoftheworld,especiallyindevelopingeconomies,consumerswouldshifttomoremeatintheirdiets,whichrequiresmorefeedgrainsformeatproduction.Asaresult,thebaselineanalysiscalledforexpandedworldtradeinfeedgrainsandincreasedexportsfromtheUnitedStatestosupportgrowthinglobalmeatproduction.Significantincreasesareprojectedincornuseforethanolproductionduringthenextseveralyears,reflectingcontinuedexpansionofproductioncapacity.State-levelbansonmethyltertiarybutyletherasafueloxygenatehaveincreasedincentivesforethanolexpansioninrecentyears,andhighpetroleumpriceshaveledtoadditionalsupportforethanoluse.

naturalgaspricesareexpectedtocontinuetobeanimportantfactorinU.S.ammoniaproduction.ifnaturalgaspricesremainathighlevels,ammoniaproductioncapacityatolder,highercostplantsintheUnitedStateswillmostlikelyclose.theDoeprojectsthatHenryHubpricesareexpectedtoaverageabout$6.90permillioncubicfeet($6.72permillionBritishthermal

53.8 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

units)in2005andslightlymorethan$7.�0permillioncubicfeet($6.9�permillionBritishthermalunits)in2006,whichwouldcontinuetoputpressureonmarginalproducers(U.S.Departmentofenergy,2005§).newlowercostammoniaplantsthathavebeenconstructedinsuchlocationsastrinidadandtobagotosupplytheU.S.marketalsowouldputpressureonsomelessefficientU.S.producers.Asaresult,moreU.S.plantsarelikelytoclose,andtheUnitedStateswillincreaseitsimportdependencyforammonia.

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U.S.environmentalProtectionAgency,2004,nationalcoastalconditionreportii:Washington,DC,U.S.environmentalProtectionAgencyePA620/r-03/002,268p.

Internet References Cited

AirProductsandChemicalsinc.,2004(December�3),Form�0-K,accessedJune9,2005,atUrLhttp://www.sec.gov/Archives/edgar/data/2969/0000950�23040�4695/y68942e�0vk.htm.

AtacamaMineralsCorp.,2005,reporttoshareholdersfortheyearendingDecember3�,2004,accessedMay�9,2005,viaUrLhttp://www.atacama.com.

CornellUniversity,2004(February�4),‘remarkablechemicaltransformation,’newmethodforconvertingnitrogentoammonia,isdiscoveredbyCornellresearchers,accessedFebruary27,2004,atUrLhttp://www.news.cornell.edu/releases/Feb04/Chirik.nitrogen�.deb.html.

ShowaDenkoK.K.,2004(May7),SDKstartscommercialproductionofammoniausingwasteplastic,accessedJuly�3,2004,atUrLhttp://www.sdk.co.jp/contents_e/news/index.htm.

Sofiaecho.com,2004(December�6),USwantsChimcoreturned,accessedMay�9,2005,atUrLhttp://www.sofiaecho.com/article/us-wants-chimco-returned/id_�0509/catid_23.

terraindustriesinc.,2004(December2�),terraindustriesinc.completesacquisitionofMississippiChemicalCorporation,accessedJune9,2005,atUrLhttp://www.terraindustries.com/latest/corp_activities/04-�2/mcc_completion.pdf.

UnitednationsenvironmentalProgramme2004,geoyearbook2003,accessedMay�9,2005,atUrLhttp://www.unep.org/geo/yearbook.

U.S.Courtofinternationaltrade,2005(January3�),Slipop.05-�3—UnitedStatesCourtofinternationaltrade,accessedMay�8,2005,atUrLhttp://www.cit.uscourts.gov/slip_op/Slip_op05/05-�3.pdf.

U.S.DepartmentofAgriculture,economicresearchService,2005(February),USDAagriculturalbaselineprojectionsto20�4,accessedJune9,2005,atUrLhttp://www.ers.usda.gov/publications/oce05�.

nitrogen—2004 53.9

U.S.DepartmentofAgriculture,nationalAgriculturalStatisticalService2005(March3�),Prospectiveplantings,accessedJune9,2005,atUrLhttp://usda.mannlib.cornell.edu/reports/nassr/field/pcp-bbp.

U.S.Departmentofenergy,2005(June7),Short-termenergyoutlook,accessedJune�7,2005,atUrLhttp://www.eia.doe.gov/emeu/steo/pub/contents.html.

GENERAL SOURCES OF INFORMATION

U.S. Geological Survey Publications

evaporitesandBrines.Ch.inUnitedStatesMineralresources,ProfessionalPaper820,�973.

Fertilizers—SustainingglobalFoodSupplies.FactSheet�55-99,�999.

HistoricalStatisticsforMineralCommoditiesintheUnitedStates,open-Filereport0�-006,200�.

nitrogen.Ch.inMineralCommoditySummaries,annual.nitrogenintheMississippiBasin—estimatingSourcesand

PredictingFluxtothegulfofMexico.FactSheet�35-00,2000.

nonpointandPointSourcesofnitrogeninMajorWatershedsoftheUnitedStates.Water-resourcesinvestigationsreport94-400�,�994.

nutrientsinthenation’sWaters—tooMuchofagoodthing?.Circular��36,�996.

Other

AmberWaves.U.S.DepartmentofAgriculture,monthly.ChemicalMarketreporter,weekly.Fertilizerinstitute,the.internationalFertilizerDevelopmentCenter.internationalFertilizerindustryAssociation.nolan,B.t.,ruddy,B.C.,Hitt,K.J.,andHelsel,D.r.,�998,A

nationallookatnitratecontaminationofgroundwater:WaterConditioningandPurification,v.39,no.�2,p.76-79.

nitrogen.Ch.inMineralFactsandProblems,U.S.BureauofMinesBulletin675,�985.

nitrogen&Methanol.CrUPublishingLtd.,bimonthly.

TABLE 1

SALIENT AMMONIA STATISTICS1, 2

(Thousand metric tons of contained nitrogen unless otherwise specified)

2000 2001 2002 2003 2004United States:

Production 11,800 9,120 10,300 r 8,600 r 8,850 p

Exports 662 647 437 400 381Imports for consumption 3,880 4,550 4,670 5,720 5,900

Consumption, apparent3 14,900 13,200 14,500 14,000 r 14,300 p

Stocks, December 31, producers' 1,120 4 261 r 286 r 197 r 274

Averag p t5e annual rice, free on board Gulf Coas dollars per short ton 169 183 137 245 274

Net import reliance as a percentage of apparent consumption6 21 31 29 r 39 r 38 p

Natural g p g p e7as rice, wellhead, avera e ric dollars per thousand cubic feet 3.68 r 4.00 r 2.95 4.88 r 5.49 e

World:

Production 108,000 105,000 109,000 r 110,000 r 117,000 p

Trade8 12,700 12,600 12,900 r 13,900 r 14,600 p

eEstimated. pPreliminary. rRevised.1Data are rounded to no more than three significant digits.2Synthetic anhydrous ammonia, excluding coke oven byproduct; data are for calendar year and are from the U.S. Census Bureau unless otherwise noted.3Calculated from production plus imports minus exports and industry stock changes.4Source: The Fertilizer Institute.5Source: Green Markets.6Defined as imports minus exports; adjusted for industry stock changes.7Source: Monthly Energy Review, U.S. Department of Energy.8Source: International Fertilizer Industry Association Statistics, World Anhydrous Ammonia Trade.

53.�0 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

TABLE 2

ANHYDROUS AMMONIA SUPPLY AND DEMAND IN THE UNITED STATES1

(Thousand metric tons of contained nitrogen)

2002 2003 2004p

Production:

Fertilizer:

January-June 4,640 r 3,770 r 4,090July-December 4,660 r 3,820 r 4,090

Total 9,300 r 7,590 r 8,180Nonfertilizer:

January-June 540 563 r 362July-December 494 r 453 r 310

Total 1,030 r 1,020 r 672Grand total 10,300 r 8,600 r 8,850

Imports for consumption:

January-June 2,090 2,890 3,060July-December 2,570 2,820 2,840

Total 4,670 5,720 5,900Exports:

January-June 242 234 196July-December 195 166 185

Total 437 400 381Stocks, end of period:

January-June 246 r 241 r 203July-December 286 r 197 r 274

Apparent consumption:2

January-June 7,050 r 7,030 r 7,310July-December 7,490 r 6,980 r 6,980

Total 14,500 14,000 r 14,300pPreliminary. rRevised.1Data are rounded to no more than three significant digits; may not add to totals shown.2Calculated from production plus imports minus exports and industry stock changes.

Source: U.S. Census Bureau.

TABLE 3

MAJOR DOWNSTREAM NITROGEN COMPOUNDS PRODUCED IN THE UNITED STATES1, 2

(Thousand metric tons)

2003r 2004p

January-June July-December Total January-June July-December Total

Gross Nitrogen Gross Nitrogen Gross Nitrogen Gross Nitrogen Gross Nitrogen Gross Nitrogen

weight content weight content weight content weight content weight content weight contentUrea 2,910 1,340 2,880 1,320 5,780 2,660 2,860 1,310 2,890 1,330 5,760 2,640

Ammonium phosphatese, 3 7,300 1,160 7,920 1,310 15,200 2,480 7,770 1,210 7,340 1,190 15,100 2,400Ammonium nitrate 2,800 951 2,930 993 5,730 1,940 3,000 1,020 3,020 1,020 6,020 2,040Nitric acid 3,260 717 3,490 768 6,750 1,490 3,420 751 3,290 723 6,700 1,470

Ammonium sulfate4 1,320 279 1,290 273 2,600 552 1,370 291 1,270 269 2,640 560eEstimated. pPreliminary. rRevised.1Data are rounded to no more than three significant digits; may not add to totals shown.2Ranked in relative order of importance by nitrogen content.3Diammonium phosphate and monoammonium phosphate.4Excludes coke plant ammonium sulfate.

Source: U.S. Census Bureau, Current Industrial Reports MQ325B.

nitrogen—2004 53.��

TABLE 4

DOMESTIC PRODUCERS OF ANHYDROUS AMMONIA IN 20041

(Thousand metric tons per year of ammonia)

Company Location Capacity2

Agrium Inc. Borger, TX 490

Do. Finley, WA3 180

Do. Kenai, AK 1,250

Air Products and Chemicals Inc. Pace Junction, FL4 78

CF Industries Inc. Donaldsonville, LA 2,040

Coffeyville Resources LLC Coffeyville, KS 350

Dyno Nobel ASA Cheyenne, WY 174

Do. St. Helens, OR 101

Dakota Gasification Co. Beulah, ND 363

El Dorado Chemical Co. Cherokee, AL 175

Green Valley Chemical Corp. Creston, IA 32

Honeywell International Inc. Hopewell, VA 409

Koch Nitrogen Co. Beatrice, NE 265

Do. Dodge City, KS 280

Do. Enid, OK 930

Do. Fort Dodge, IA 350

Do. Sterlington, LA 1,110

Mosaic Co., The Faustina (Donaldsonville), LA 508

Nitromite Fertilizer Dumas, TX 128

PCS Nitrogen Inc. Augusta, GA 688

Do. Geismar, LA 483

Do. Lima, OH 542

Royster-Clark Inc. East Dubuque, IL 278

Shoreline Chemical Gordon, GA 31

Terra Industries Inc. Beaumont, TX 231

Do. Blytheville, AR4 388

Do. Donaldsonville (Ampro), LA5 478

Do. Donaldsonville (Triad), LA5 422

Do. Port Neal, IA 373

Do. Verdigris, OK 1,060

Do. Woodward, OK 444

Do. Yazoo City, MS5 463

Total 15,1001Data are rounded to no more than three significant digits; may not add to total shown.2Engineering design capacity adjusted for 340 days per year of effective production capability.3Idle since January 2001.4Closed in 2004.5Purchased from Mississippi Chemical Corp. in December 2004.

53.�2 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

2

TABLE 5

U.S. NITROGEN FERTILIZER CONSUMPTION, BY PRODUCT TYPE1,

(Thousand metric tons of nitrogen)

Fertilizer material3 2003 2004p

Single-nutrient:

Nitrogen solutions4 2,660 r 3,050

Anhydrous ammonia 2,860 r 3,030

Urea 2,280 r 2,430

Ammonium nitrate 473 r 470

Ammonium sulfate 218 r 233

Aqua ammonia 73 98

Other5 389 315

Total 8,950 r 9,620

Multiple-nutrient6 2,100 r 2,330

Grand total 11,000 r 12,000pPreliminary. rRevised.1Data are rounded to no more than three significant digits; may not add tototals shown.2Fertilizer years ending June 30.3Ranked in relative order of importance by product type.4Principally urea-ammonium nitrate solutions, 29.9% nitrogen.5Includes other single-nutrient nitrogen materials, all natural organics, andstatistical discrepencies.6Various combinations of nitrogen (N), phosphate (P), and potassium (K):N-P-K, N-P, and N-K.

Source: Commercial Fertilizers 2004. Prepared as a cooperative effort

by The Fertilizer Institute and the Association of American Plant Food

Control Officials.

nitrogen—2004 53.�3

TABLE 6

U.S. PRODUCER STOCKS OF FIXED NITROGEN

COMPOUNDS AT END OF PERIOD

(Thousand metric tons of nitrogen)

Material1 2003 2004p

Ammonia:

January-June 241 r 203July-December 197 r 274

Nitrogen solutions:2

January-June 91 r 77July-December 96 r 133

Urea:

January-June 78 45July-December 56 93

Ammonium phosphates:3

January-June 80 r 57July-December 61 r 82

Ammonium nitrate:

January-June 48 r 31July-December 41 r 44

Ammonium sulfate:

January-June 20 21July-December 25 18

Yearend total4 476 r 644pPreliminary. rRevised.1Ranked in relative order of importance.2Urea-ammonium nitrate and ammoniacal solutions.3Diammonium and monoammonium phosphates.4Calendar year ending December 31.

Source: U.S. Census Bureau, Current Industrial Reports

MQ325B.

TABLE 7

PRICE QUOTATIONS FOR MAJOR NITROGEN COMPOUNDS AT END OF PERIOD

(Dollars per short ton)

2003 2004

Compound June December June December

Ammonium nitrate, free on board (f.o.b.) Corn Belt1 170-180 190-195 178-190 195-210

Ammonium sulfate, f.o.b. Corn Belt1 137-145 135-140 165-175 180-190

Anhydrous ammonia:

F.o.b. Corn Belt1 275-290 315-330 295-315 350-370

F.o.b. Gulf Coast2 250 290 270 285

Diammonium phosphate, f.o.b. central Florida 158-160 185-195 180-185 205-215

Urea:

F.o.b. Corn Belt,1 prilled and granular 180-195 215-225 198-208 255-270

F.o.b. Gulf Coast, granular2 162-167 192-195 187-188 225-2301Illinois, Indiana, Iowa, Missouri, Nebraska, and Ohio.2Barge, New Orleans, LA.

Source: Green Markets.

53.�4 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

TABLE 8

U.S. EXPORTS OF ANHYDROUS AMMONIA, BY COUNTRY1

(Thousand metric tons of ammonia)

Country 2003 2004

Canada 18 10

Chile -- 15

Korea, Republic of 416 383

Mexico 37 16

Philippines -- 24

Taiwan 11 10

Other 5 5

Total 487 463-- Zero.1Value data suppressed by U.S. Census Bureau.

Source: U.S. Census Bureau.

TABLE 9

U.S. IMPORTS OF ANHYDROUS AMMONIA, BY COUNTRY1

(Thousand metric tons of ammonia and thousand dollars)

2003 2004

Country Gross weight Value2 Gross weight Value2

Argentina 52 12,800 23 5,500

Belgium -- -- (3) 12

Brazil 52 10,200 73 20,100

Canada 1,120 249,000 1,280 323,000

Colombia 6 1,000 28 7,200

France 5 969 -- --

Hungary -- -- 10 2,870

Indonesia 21 5,510 67 16,900

Italy (3) 15 -- --

Latvia 87 20,200 (3) 8,640

Libya -- -- 21 5,950

Lithuania -- -- 24 7,010

Mexico -- -- 25 8,430

Netherlands 6 1,170 (3) 4

Qatar 35 7,220 -- --

Russia 1,450 309,000 864 212,000

Saudi Arabia 88 22,200 -- --

Spain -- -- 15 3,690

Trinidad and Tobago 3,680 777,000 3,880 1,030,000

Turkey -- -- 17 5,300

Ukraine 109 21,000 524 138,000

United Kingdom (3) 11 (3) 48

Venezuela 240 53,100 323 87,300

Total 6,950 1,490,000 7,180 1,880,000-- Zero.1Data are rounded to no more than three significant digits; may not add to totals shown.2Cost, insurance, and freight value.3Less than ½ unit.

Source: U.S. Census Bureau.

nitrogen—2004 53.�5

TABLE 11

U.S. IMPORTS OF MAJOR NITROGEN COMPOUNDS1

(Thousand metric tons and thousand dollars)

2003 2004Gross Nitrogen Gross Nitrogen

Compound weight content Value2 weight content Value2 Principal sources, 2004

Ammonium nitrate3 1,200 408 166,000 1,060 358 191,000 Canada, 48%; Netherlands, 16%; Romania, 16%.Ammonium nitrate-

limestone mixtures 4 1 341 2 1 178 Japan, 62%; Germany, 17%; Netherlands, 14%.

Ammonium sulfate3 283 60 28,500 326 69 37,500 Canada, 92%.

Anhydrous ammonia4 6,950 5,720 1,490,000 7,180 5,900 1,880,000 Trinidad and Tobago, 54%; Canada, 18%; Russia, 12%.

Calcium nitrate 91 15 8,900 126 21 11,100 Norway, 98%.

Diammonium phosphate 142 26 30,700 31 6 12,900 Russia, 57%; Belgium, 14%.

Monoammonium phosphate 164 18 41,000 156 17 48,600 Canada, 60%; Mexico, 10%; Russia, 10%.

Nitrogen solutions 1,740 521 225,000 2,010 602 319,000 Russia, 31%; Canada, 21%; Belarus, 12%.

Potassium nitrate 79 11 23,900 66 9 21,800 Chile, 81%; Israel, 11%.Potassium nitrate-sodium

nitrate mixtures 50 8 18,000 42 6 14,800 Israel, 57%; Chile, 39%.Sodium nitrate 88 15 17,100 66 11 15,700 Chile, 94%.

Urea 4,970 2,280 866,000 4,940 2,270 1,020,000 Canada, 37%; Kuwait, 13%; Qatar, 10%.

Total 15,800 9,080 2,920,000 16,000 9,270 3,580,0001Data are rounded to no more than three significant digits; may not add to totals shown.2Cost, insurance, and freight value.3Includes industrial chemical products.4Includes industrial ammonia.

Source: U.S. Census Bureau.

TABLE 10

U.S. EXPORTS OF MAJOR NITROGEN COMPOUNDS1

(Thousand metric tons)

2003 2004

Gross Nitrogen Gross Nitrogen

Compound weight content weight content Principal destinations, 2004

Ammonium nitrate2 52 18 109 37 Mexico, 74%; Canada, 18%.

Ammonium sulfate2 868 234 718 194 Brazil, 50%; Dominican Republic, 12%; Canada, 10%.Anhydrous ammonia 487 400 463 381 Republic of Korea, 83%.Diammonium phosphate 6,210 1,120 5,040 907 China, 28%; India, 8%; Pakistan, 8%; Mexico, 8%.Monoammonium phosphate 2,920 322 3,420 376 Brazil, 30%; Australia, 22%; Canada, 18%.Urea 876 402 704 323 Mexico, 61%; Republic of Korea, 22%.

Total 11,400 2,490 10,500 2,2201Data are rounded to no more than three significant digits; may not add to totals shown.2Includes industrial chemical products.

Source: U.S. Census Bureau.

53.�6 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

TABLE 12

AMMONIA: WORLD PRODUCTION, BY COUNTRY1, 2

(Thousand metric tons of contained nitrogen)

Country 2000 2001 2002 2003 2004

Afghanistane 20 20 20 20 20

Albaniae 10 10 10 10 10

Algeria 458 469 563 578 542 e

Argentina 190 r 597 617 724 701Australia 576 762 686 787 790

Austriae 450 440 440 440 440

Bahrain 350 372 377 312 311

Bangladesh3 1,255 1,273 1,289 1,389 1,380Belarus 730 725 799 r 726 r 765 e

Belgium 863 788 842 874 857

Bosnia and Herzegovinae 1 1 1 1 1Brazil 925 769 1,021 939 1,077Bulgaria 533 477 328 321 389Burma 78 28 21 63 35 e

Canada 4,130 3,439 3,700 r 3,662 r 4,107 e

China 27,700 28,200 30,200 r 31,500 r 34,800 e

Colombia 93 95 111 108 r 98Croatia 325 259 235 264 332

Cubae 135 135 135 135 135

Czech Republic 246 206 215 235 233

Denmarke 2 2 2 2 2Egypt 1,511 1,801 1,839 1,790 1,675Estonia 145 151 39 81 166

Finlande 75 4 80 87 r 60 70France 1,620 e 1,380 e 1,172 1,153 1,120Germany 2,473 r 2,522 2,623 r 2,803 2,741Georgia 135 60 90 125 130 e

Greece 121 57 66 123 132Hungary 352 324 238 232 304Iceland 7 e 3 -- -- --

India5 10,148 10,081 9,827 10,048 r 10,718Indonesia 3,620 3,655 4,200 4,250 4,120Iran 965 1,087 1,119 1,115 1,088

Iraqe 200 280 532 -- --Ireland 410 443 400 e -- --Italy 408 434 391 475 532Japan 1,410 1,318 1,188 1,054 1,090

Korea, Northe 100 100 70 r 70 r 70Korea, Republic of 369 368 153 119 163Kuwait 410 400 414 444 e 413Libya 552 495 533 577 e 577 e

Lithuania 420 440 467 461 424Malaysia 605 726 848 910 843Mexico 701 548 437 r 440 568

Netherlandse 2,540 1,990 2,050 1,750 1,970New Zealand 105 117 109 128 124Norway 334 323 330 354 420Pakistan 1,884 2,228 2,214 2,357 2,114

Perue -- 5 5 5 5Poland 1,862 1,735 1,311 1,906 1,976Portugal 246 202 190 245 244Qatar 1,097 1,159 1,166 r 1,185 r 1,428Romania 1,016 949 930 1,180 1,172See footnotes at end of table.

nitrogen—2004 53.�7

TABLE 12—Continued

AMMONIA: WORLD PRODUCTION, BY COUNTRY1, 2

(Thousand metric tons of contained nitrogen)

Country 2000 2001 2002 2003 2004

Russia 8,735 8,690 8,600 e 9,100 e 9,800Saudi Arabia 1,743 1,774 1,737 1,743 1,726Serbia and Montenegro 60 e 66 115 62 136Slovakia 271 215 226 230 268South Africa 560 506 492 493 459Spain 442 436 415 432 404Switzerland 33 31 33 29 32Syria 91 138 143 161 115Taiwan 11 12 r 11 r 11 r 11 e

Tajikistane 15 5 15 20 20Trinidad and Tobago 2,680 3,036 3,296 3,529 r 3,875Turkey 53 67 301 289 329

Turkmenistane 75 75 85 85 85Ukraine 3,577 3,700 3,700 3,900 e 3,900 e

United Arab Emirates 348 358 364 421 380United Kingdom 814 850 837 1,044 1,071

United States6 11,800 9,120 10,300 r 8,600 r 8,850 p

Uzbekistan 810 670 740 815 e 840 e

Venezuela 423 808 666 r 732 r 1,012Vietnam 42 53 58 80 e 216

Zimbabwee 58 58 61 55 48 Total 108,000 105,000 109,000 r 110,000 r 117,000eEstimated. pPreliminary. rRevised. -- Zero.1World totals, U.S. data, and estimated data have been rounded to no more than three significant digits; may not add to totals shown. 2Table includes data available through June 18, 2005.3May include nitrogen content of urea.4Reported figure.5Data are for years beginning April 1 of that stated.6Synthetic anhydrous ammonia; excludes coke oven byproduct ammonia.

53.�8 U.S.geoLogiCALSUrVeyMinerALSyeArBooK—2004

FIGURE 1AMMONIA AND NATURAL GAS PRICES IN 2004

150

200

250

300

350

1 11 21 31 41 51

WEEK

4

5

6

7

8

Ammonia

Natural gas

Sources: Green Markets and Natural Gas Weekly.

HE

NR

Y H

UB

SPOT

NA

TU

RA

L G

AS PR

ICE

(DO

LL

AR

S PER

MIL

LIO

N B

RIT

ISH T

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RM

AL

UN

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)G

UL

F C

OA

ST A

MM

ON

IA P

RIC

E (

DO

LL

AR

S PE

R S

HO

RT

TO

N)

FigUre�AMMoniAAnDnAtUrALgASPriCeSin2004

FIGURE 2PROJECTED PLANTED ACREAGE

20

25

30

35

40

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

CROP YEAR

MIL

LIO

N H

EC

TA

RE

S

Corn

Soybeans

Wheat

Source: U.S. Department of Agriculture.

FigUre2ProJeCteDPLAnteDACreAge