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IPL - Incitec Pivot

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Country Lad said:
It sounds to me a clever way to put pressure on the federal government to go further with the proposed quarantining of gas for domestic consumption which seems to have gone pretty well nowhere.
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but there's a new game in town

The main domestic producer of urea in Australia, Incitec Pivot’s Gibson Island plant in Queensland, is due to close in 2022 after it failed to source affordable gas, further increasing the country’s reliance on imports (of AdBlue).

Global urea prices have surged to more than $1300 a tonne in recent months, up from under $500.

Australia has managed to access additional supplies of urea from Indonesia, which has increased storage supplies by a couple of weeks. The stockpile may be further topped up as talks with Saudi Arabia, the United Arab Emirates, Qatar and Japan continue,
 
Given the level of interference from various levels of governments, it comes as a bit of a surprise that this did not go "unfixed".
Australia, lucky we have really big feet on those critters on the coat of arms, we specialise in shooting ourselves in the foot.
Mick
 
That was in November, took less than 2 months to reach critical status
 
reading around the traps:

Matt Dalgleish of agribusiness consultancy Thomas Elder Market says the long chain of events that has led to the AdBlue issues can at least in part be traced back to China’s unofficial ban on Australian coal. The circle looks something like this.

It’s been well documented that the shortages of AdBlue relate to China’s restricting exports of a product called urea, which is both the main ingredient in AdBlue and one of the world’s most common fertilisers.

China has imposed restrictions on urea because of shortages of fertilisers, which have sent prices to record levels around the world. These price hikes and shortages are caused in a large part because of surging gas and coal prices, which have not been helped by China’s decision to block Australian coal imports.

The fertilisers shortages are such that Dalgleish, who also owns a commercial pig farm, is being inundated with offers from farmers wanting to use his pigs’ poo as organic fertiliser.

Dalgleish emphasises that there are other factors in the fertiliser price spike, including Russia imposing export restrictions to keep its domestic market supplied.

Climate issues have also played a role. Drought and then disastrous floods in Canada that have destroyed infrastructure (Potash is priced out of Vancouver; MoP comes from other side of the Rockies). Floods in Spain. Australia’s weather has largely been kind to farmers, but recent floods have caused interruptions.

- So, shouldn't IPL be jumping for joy?
 
that would depend if IPL can keep up with current customer demand ( and has extra production capacity )

remember IPL isn't the only fertilizer producer in Australia , the rivals might be better placed to produce more , faster

i hold WES , and keep watch on ORI , and NUF

DYOR

( i have held IPL in the past )
 
The federal government and fertiliser manufacturer Incitec Pivot have struck an agreement to significantly increase the local production of urea used in the diesel exhaust fluid AdBlue.

The company will design, trial and, once tests are successful, scale up manufacturing of significant quantities of technical grade urea to supply the domestic market.

In November, Incitec Pivot announced plans to shut down its Gibson Island fertiliser plant in Brisbane by December 2022.

The new deal has brought much-needed relief for many in the industry.

"It's good news that there is an Australian option to produce urea locally," Simon Henry, chief executive of DGL Group, the parent company of Australia's largest AdBlue producer AUSblue, told the ABC.
 
divs4ever said:
so has the FFI deal fallen through ?? ( for Gibson Island )
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I doubt it, the requirement to get H2 and ammonia supply is still there.
The big question is, where does it get the gas from to run the plant, just another squeeze on a limited supply.
An East Coast gas terminal seems more and more likely IMO.
 
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sptrawler said:
I doubt it, the requirement to get H2 and ammonia supply is still there.
The big question is, where does it get the gas from to run the plant, just another squeeze on a limited supply.
An East Coast gas terminal seems more and more likely IMO.
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Australia is so amazing, rushing to build a terminal to import expensively the gas we export cheaply.
The lucky country..but yes, ipl was closing its plant due to gas price and availability
 
I don't believe IPL have got the vision nor the assets nor the financial ability to do anything meaningful in the urea/gas/hydrogen space.

The big boys will move in.

gg
 
Looks like IPL's Brisbane plant has a lifeline.

Trucking crisis averted by government deal to manufacture scarce fuel additive

A local company has ramped up production of a key fuel additive to stop an international shortage bringing the trucking industry to a grinding halt.
www.smh.com.au
Fertiliser maker Incitec Pivot struck a deal with the federal government to ramp up manufacturing of the AdBlue fluid at its Gibson Island plant in Brisbane, which is required as a fuel additive for most modern diesel vehicles to control nitrogen oxide pollution.

The federal government granted Incitec Pivot $29.4 million last year to produce AdBlue, amid fears of widespread supply chain disruption preventing the delivery of food and goods across the country.

Incitec Pivot chief executive Jeanne Johns said the company had increased the volume of AdBlue it produced by 800 per cent since early December.
 
Sean K said:
The Russia thing is going to potentially affect fertiliser supply in Europe and elsewhere. Worth digging into for the effect on IPL's business.
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And not easy due to unintended consequences,as mentioned previously,i like ipl for what i believe the right reasons: fertilisers, transport of H2, Australia conversion of gas,etc..but many many factor can influence it .including weather lately, not to mention the side effects of russian sanctions.
Not sure i still hold as i had tracking SL in place.
 
Sean K said:
The Russia thing is going to potentially affect fertiliser supply in Europe and elsewhere. Worth digging into for the effect on IPL's business.
Click to expand...


I get the feeling that prices will move down from here.
But then that is just my take at this point in time.

Cheers, Rob
 
divs4ever said:
a very important detail , that is

might be worth watching intently
Click to expand...

I've arrived here from Seeking Alpha and "Publius" posting very interesting articles there - well worth reading to follow the global situation with Urea and Fertiliser. I have bought up some UAN, but being based in Brissie inevitably now looking at IPL as a possible investment too. I don't know the background of the company and need to do some DD, but given what I have been learning recently about the global market, if a country can produce fertiliser locally they are going to want to.

One might even wonder if the Russia action is about gaining control of global food supplies to cause famine in a few years. The area they have targeted in Ukraine is farming land and major wheat exporter IIRC.
 
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