Fight over port charges in Trinidad jeopardizes ammonia, methanol exports
- Nutrien shuts plant due to port access restrictions
- Trinidad seeks 200% increase in port charges, retroactive to 2020
- Gas shortages lead to shutdowns in Trinidad's petrochemical sector
A standoff involving port charges paid by producers of methanol and ammonia to Trinidad and Tobago's National Gas Company is threatening sales of the products from one of the world's biggest producers, three people familiar with the issue said.
Nutrien on Tuesday said it was temporarily shutting its plant on the Caribbean island over "port access restrictions" imposed by Trinidad's National Energy Company, a NGC subsidiary.
"NEC has now confirmed its intent to restrict Nutrien's access to the port," Nutrien told employees in an internal note. "This action leaves us with no choice but to begin a controlled temporary shutdown of operations effective October 23," it added.
More plant shutdowns could follow in the coming weeks as Trinidad authorities have warned they will not allow companies to export ammonia and methanol unless they pay higher port fees, the sources said.
Trinidad's Energy Minister confirmed the shutdown of the Nutrien plant was related to port access and said the government and its state-owned companies were in discussions with Nutrien and other port users to try and resolve the issue.
Port charges could increase by 200%. Trinidad's National Energy Company wants to increase port charges by as much as 200% and apply the increases retroactively to 2020, two of the three people said.
Two of the world's largest methanol producers - Methanex and Proman - are also facing higher port charges and could be cut off from the port if they don't pay, as well as Koch's majority-owned Point Lisas Nitrogen and Yara.
Methanex, Proman, NGC and Yara did not immediately respond to requests for comment.
Trinidad is the second largest exporter of ammonia to the U.S., with 37% of all imports coming from the Caribbean island in 2024. The country is also the world's second largest exporter of methanol and the largest exporter of urea to the U.S., according to the U.S. Geological Survey.
Trinidad's petrochemical sector has been facing significant gas curtailment, with three out of Proman's five methanol plants shut down due to gas shortages, as well as one of Methanex's two plants.
With several long-term supply contracts about to expire, NGC has not offered new prices to the companies, according to three people with knowledge of the situation.
After the administration of President Donald Trump imposed a 10% tariff on products from Trinidad, Proman has in recent months diverted most of the methanol it previously directed toward the U.S. market to Europe, data from the country's Ministry of Trade show.
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