update ammonia shutdowns terra chemical high prices force chemicals sell gas futures chemical companies forced shut operations high natural gas prices nevertheless making money selling gas futures contracts terra industries mississippi chemical corp became latest companies announce cutbacks related current natural gas costs iowa based terra industries said sold portion december natural gas purchases shutdown 50 verdigis ok ammonia facility company previously reported would operate bytheville ar beaumont tx facilities month december well similar maneuver mississippi chemical corp producer nitrogen phosphorus potassium based products mississippi louisiana new mexico reported sale natural gas futures contracts january forward order take full advantage opportunity uncovered soaring natural gas prices mississippi chemical said expects realize pre tax gain 16 million second fiscal quarter ending dec 31 recently sold contracts problem lies fact escalating natural gas costs mimicked chemical prices overabundance market kept chemical prices relatively low gas prices feedstock chemicals continue climb difference latest shutdowns companies involved openly announced sold gas contracts profitable manufacturing products said ron phillips fertilizer institute duke energy ken nyiri divisional director strategic planning research commented mississippi chemical transactions guess probably made 4 mmbtu margin gas significantly could make ammonia fact would lost 30 unit ammonia probably costing 205 ton make gas bought 5 mmbtu november market today 205 basically would break even ammonia production costs selling gas around 9 mmbtu made 4 mmbtu question convert gas ammonia make nothing sell gas make 16 million michael l bennett executive vice president terra said natural gas price increase since december requirements purchased verdigris permitted us sell portion purchases generate higher gross profits could realized selling products manufactured natural gas evaluate economics bringing verdigris back full production near end december january natural gas purchase commitments must made terra estimates idled facilities represent 40 30 77 88 company north american ammonia uan urea methanol manufacturing capacity respectively production four chemicals heavily dependent natural gas phillips said latest data october companies survey entire ammonia market good bit looking operating rates 76 currently total 4 5 million tons year ammonia production capacity service 20 21 million tons year production capacity clearly folks selling gas rather producing ammonia said nyiri prudent thing think marketplace buy ammonia 9 gas costs 350 ton make ammonia 145 current market willing pay spokeswoman mississippi chemical said company held december gas contracts operating varied levels capacity throughout 2000 see daily gpi june 30 depending gas prices product prices around january february time frame make decisions operations rate capacity said melinda hood mississippi chemical spokeswoman charles dunn ceo mississippi chemical said remain committed nitrogen business customers also take advantage opportunities optimize cash flow challenging times belief current unprecedented natural gas prices unlikely sustained intermediate term stated dunn result felt company best interest sell futures positions lock substantial gain afforded recent increase natural gas prices going forward continue determine operating levels plants based relationship natural gas prices nitrogen product prices customers requirements time international imports also hurting u producers currently surplus ammonia international market holding ammonia prices u fertilizer producers compete international market gas prices 46 cents mmbtu russia 50 cents 1 mmbtu argentina venezuela 1 mmbtu trinidad u imports 5 5 million tons ammonia year fertilizers represent 80 demand ammonia united states terra industries said facilities would resume production soon became economical whether gas prices declining nitrogen methanol prices rising long prices reach levels allowing positive cash flows nyiri said believes relief sight pointed ammonia market sitting around 205 ton level last several months believes ammonia prices increase entering next planting season got model peaking around 250 ton april may time gas costs coming point 1 2 bcf demand fertilizer production industry begin returning service