Last day for Agrium Fertilizer plant in Nikiski...
Factory runs out of gas
ktuu.com
by Sean Doogan
Wednesday, Dec. 5, 2007
NIKISKI, Alaska -- The Agrium Fertilizer plant in Nikiski closes its doors for good Thursday.
Plant managers say they're still making a profit but cannot find any natural gas, necessary for the production of the fertilizer.
The last cargo ship should leave for Korea Wednesday morning. It will contain 27,000 tons of fertilizer made from Cook Inlet natural gas, a commodity in short supply here in Southcentral.
In Nikiski the Agrium Fertilizer plant is big business. It's where Cook Inlet natural gas has been combined with air and water to make fertilizer since 1969.
But time has caught up with the Agrium plant. The plant's 80 employees will punch the clock for the last time Thursday morning.
"I'm going to try to find another job. I'd like to find one locally, we'll see," plant shipping supervisor Rodney Reynolds.
Despite high natural gas prices, plant managers say the company makes money. They say its supply, not demand, which is the culprit.
"The recent discoveries just haven't kept pace with the demand. So we just haven't been able to keep up," said Agrium plant manager Chris Sonnichsen.
Existing Cook Inlet natural gas is drying up. Some say demand will outweigh supply as early 2014 if no new gas is discovered.
That's a problem people here say bigger than 300 jobs, and $600,000 in lost tax revenue to the Kenai Peninsula Borough.
"Agrium is number seven on our tax list. Of the top 10, eight of the companies are petroleum producing in one way or another," said Kenai Peninsula Borough Mayor John Williams.
The company has set up a temporary job center to help the employees find work. After the last ship leaves the specialized jobs they once held could be as hard to find as a fresh supply of Cook Inlet natural gas.
Plant officials say 80 people will lose their jobs Thursday. The remaining 50 or so employees will be laid off over the next few months as the plant is mothballed and prepared for shut down.
A handful of employees are working on a small project to make fertilizer from coal but the technical and economic aspects are still being worked out, meaning its years away from fruition. |
