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Waggaman ammonia plant undergoing repair work

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World Fertilizer,

Incitec Pivot Ltd. has advised that investigations into an incident at its Waggaman, Louisiana, US, ammonia plant have confirmed that a rupture occurred in a section of pipe, resulting in a release of hydrogen.

Extensive investigations have revealed only minor damage to surrounding equipment, and repair work is primarily focused on the damaged spool piece. The root cause analysis indicates that the damage mechanism is limited to this section of pipe. Based on investigations to date, IPL expects it will take between 6 and 8 weeks to complete the repairs and restart the plant.

IPL has taken, and will continue to progress, measures to mitigate the impact of the closure of the plant, including calling force majeure on its external ammonia supply contracts.

IPL estimates that the incident and associated downtime will give rise to an impact on earnings before interest and tax (EBIT) of approximately US$95-US$125 million (AUS$132- AUS$174 million) and net profit after tax (NPAT) of US$68-US$90 million (AUS$94-AUS$125 million).

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Ammonia news