Ammonia and Liquid Carbon Dioxide Prices are Set To skyrocket Further Due to Rising Natural Gas Prices

Due to the increasing prices of Natural gas, the cost evaluation of liquid carbon dioxide and Ammonia is also set to skyrocket further. With the tight supply chain coming to the head for the end-users and suppliers, the gas industry has faced various challenges in the European carbon dioxide business.

There is a reeling price spike in all European companies that use natural gas as raw material or the source of energy, especially ammonia and carbon dioxide. The price hiked up to USD 342 per megawatt-hour for the gas industry in the past week. Natural gas is the main component and raw material for ammonia. In England, the production of ammonia was halted at the Billingham Ammonia plant, due to the high-cost evaluations of natural gas.
 
The historic Belgian brewery located in the village of Melle has been involved in a legal dispute with Nippon Gases Europe over the latter’s use of force majeure conditions in the last week.  A 13-fold increase in the price of liquid carbon dioxide from Nippon Gases led the brewery to consider ceasing production. According to market experts, the prices of carbon dioxide increased from EUR 250 per tonne to EUR 3,350 per tonne.

Request Access For Regular Price Update of Ammonia

Besides, the ongoing conflict between Russia and Ukraine has impacted the entire industrial gas supply chain, demonstrating vulnerabilities from natural gas to LNG to the rare gases which are used in microchips like neon. Due to India’s strong reliance on imported LNG and the fact that natural gas constitutes the primary feedstock to produce urea, a crucial fertiliser, the Indian government decided to enhance its scheduled USD 14 billion subsidy of fertiliser.

As per market experts, the severe trade transactions against Russia potentially have an influence on India’s supply of fertiliser which will further soar the prices globally.  In the Agricultural sector, urea was supplied at uniform statutory notified prices.

With an increase of about 200 percent, the gas prices were valued at USD 24.71 per metric million British thermal units in 2022 whereas previously it was estimated at around USD 8.21/MMBtu in 2021.

The Russian invasions of Ukraine have already resulted in high global gas prices. As the year progresses, the government is likely to revise the subsidy of fertilisers much higher.

Read More About Ammonia Production Cost Reports - REQUEST FREE SAMPLE COPY IN PDF

According to procurement resource, rising natural gas prices will also continue to drive up liquid carbon dioxide and ammonia cost valuations. The gas industry has faced a range of challenges in the European Carbon business as the supply chain of end-users and suppliers grows tighter. All European companies using natural gas as a feedstock or fuel have seen increased prices, especially ammonia and carbon dioxide.

The price was increased by 200 percent and was valued at USD 24.71 per metric million British thermal units in 2022, which earlier in 2021 was USD 8.21/MMBtu. Whereas the prices of carbon dioxide hyped up from EUR 20 per tonne to EUR 3,350 per tonne.