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Article: Agrium, Unocal resolve part of natural-gas contract dispute.
- Article from:
- AK Oil & Gas Reporter
- Article date:
- August 2, 2004
CopyrightCOPYRIGHT 2004 Alaska Oil & Gas Reporter. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Aug. 2--Agrium Corp. and Unocal announced an agreement July 23 on a key part of a complex and long-standing contract dispute over the supply of natural gas to Agrium's ammonia and urea fertilizer plant near Kenai.
However, the deal does not provide a long-term solution to problems Agrium has encountered in getting enough gas to operate the plant, which is a major employer on the Kenai Peninsula. Natural gas is used as a feedstock in the production of ammonia and urea fertilizer, which Agrium sells mainly in export markets.
An arbitration panel awarded Agrium $36.5 million in damages from Unocal with an additional $2.1 million in interest for Unocal's ...