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Soaring gas prices have closed two fertilizer plants in northern England. This is one of the first signs that a global supply shortage could force many energy-intensive industries to curtail activity this winter.
New York-listed fertilizer group CF Industries Holdings has stopped production at Teesside’s Billingham and Cheshire’s Ins plants due to high gas prices. “There was no estimate of when production would resume at the facility,” the group said. Overnight statement.
British Gas owner Centrica Warning at the beginning of the month Due to global supply shortages, heavy industry may curb winter production. UK Steel, an industry group, also warned this week that some members were shut down during times when energy prices were “stunning.”
Gas prices in the UK and Europe have skyrocketed to fresh highs in recent weeks as traders warn the continent is heading for a major heating season with record low inventories. Inventories remained low after the long cold last winter, but due to reduced supply from Russia and strong demand for liquefied natural gas (LNG) in Asia, injections into storage facilities during the summer Was restricted. Gas crunches have had a knock-on effect on electricity prices.
CF Industries’ Ince plant has been in operation since 1965 and employs around 400 people. 1 million tons of fertilizer One year, according to the company’s UK website. The Billingham facility has 190 employees.
Rajiv Gogna, a partner at LCP Energy Analytics, said:
The closure could put pressure on the UK minister and UK energy regulator Ofgem to take action to protect industry and homes.
Gareth Stace, Director of UK Steel, said earlier this week: [UK] The government and Ofgem must be prepared to take action as this situation continues, “he added,” the situation is becoming more and more urgent every day. “
In the UK, already high gas prices have deteriorated this week Fire on a major submarine cable in the UK We are importing electricity from France. IFA1 cables, which typically have a capacity of 2 gigawatts, will only work at half the capacity until the end of March next year after the incident. Analysts believe that the country will have to rely more on gas-fired power plants in the coming weeks and even months.
The UK government has been asked to comment on the closure of the fertilizer plant.
Report by Tom Wilson in London
High gas prices force closure of two UK fertiliser plants Source link High gas prices force closure of two UK fertiliser plants