NITROGEN — AMMONIA

Production and consumption U.S. ammonia production was estimated to be 14 Mt of nitrogen (N) content in 2023, essentially unchanged from 2022. In 2023, U.S. producers operated at about 90 percent of their rated capacity (excluding plants that were idle for the entire year). Apparent consumption was estimated to be 15 Mt of N content in 2023, essentially unchanged from 14.8 Mt of N content in 2022. The United States along with India and Russia were the world’s second-ranked ammonia producers after China and the world’s second-ranked consumer after India. Urea, ammonium nitrate, nitric acid, ammonium phosphates and ammonium sulfate were the major derivatives of ammonia produced in the United States, in descending order of tonnage. Ammonia was produced domestically by 17 companies at 36 plants in 17 states during 2023. About 60 percent of total U.S. ammonia production capacity was based in Louisiana, Oklahoma and Texas because of those states’ large reserves of natural gas, the dominant domestic feedstock for ammonia production. Approximately 88 percent of domestic ammonia apparent consumption was for fertilizer use, including anhydrous ammonia for direct application, urea, ammonium nitrates, ammonium phosphates and other nitrogen compounds. Ammonia also was used to produce explosives, plastics, synthetic fibers and resins and numerous other chemical compounds. Foreign trade According to the U.S. Census Bureau, imports of ammonia (N content) decreased by 11 percent to 1.72 Mt in 2023 from 1.93 Mt in 2022. Canada (51 percent) and Trinidad and Tobago (46 percent) were the leading sources of U.S. ammonia imports. U.S. ammonia exports increased by 26 percent to 907 kt of N content in 2023 from 720 kt of N content in 2022. Ammonia exports were primarily shipped to Chile (20 percent), Morocco (19 percent) and Norway (15 percent). Prices U.S. Gulf Coast ammonia prices in 2023 averaged $475/st, 56 percent lower than in 2022. The Gulf Coast ammonia price was $885/st at the beginning of 2023, prices decreased to a low of $259/st in late June and increased to $525/st by yearend. Ammonia prices decreased due to lower natural-gas prices, particularly in Europe and the decreased demand for ammonia. Natural gas is often used as the feedstock to produce ammonia fertilizers, and the cost of natural gas can account for 70 to 90 percent of the production costs. The Henry Hub spot natural-gas price ranged between $1.70 and $3.80/million Btu for most of the year, with an average of $2.50/million Btu. The 2023 Henry Hub spot natural-gas price was 61 percent lower than the 2002 average price of $6.45/million BTU. The U.S. Department of Energy, Energy Information Administration projected that Henry Hub natural-gas spot prices would average $3.25/million Btu in 2024. Figure 1 U.S. supply and apparent consumption of ammonia, 2003–2023. (Source: U.S. Geological Survey data) Outlook A long period of generally stable natural-gas prices in the United States made it economical for companies to upgrade existing ammonia plants and construct new nitrogen facilities. The additional capacity has reduced ammonia imports (Fig. 1). Expansion in the U.S. ammonia industry over the next five years is expected to increase capacity by about 2 percent, which includes decarbonized ammonia projects. Global ammonia capacity is expected to increase by a total of 6 percent during the next four years, with additions in Central and East Asia, Eastern Europe and North America. Consumption of ammonia in fertilizers is expected to increase by 1 percent per year, depending on availability and cost, with the largest increases in demand expected in Latin America and South Asia. According to 10-year projections (2023–2033) by the U.S. Department of Agriculture, plantings for the eight major field crops (barley, corn, cotton, oats, rice, sorghum, soybeans and wheat) in the United States were expected to remain at about 100 Mha. Corn, soybeans and wheat were expected to account for about 90 percent of acreage utilization for the eight major field crops. Corn production accounts for about one-half of U.S. fertilizer use, and planting fewer crops affects the demand for nitrogen fertilizers. Overall corn acreage in the United States was expected to remain about the same through the projected period. Corn yields are expected to remain high, with corn being used more for feed and residual use than for ethanol. Reference U.S. Geological Survey, 2024, Mineral commodity summaries 2024—Nitrogen (Fixed)- Ammonia: U.S. Geological Survey, p. 128–129, https://doi.org/10.3133/mcs2024.

NITROGEN — AMMONIA

Authored by:
L.E. Apodaca

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From sessions to strategy: Revealing long-term and emerging innovation trends in data analytics, intelligent systems and automation

Mining education gets federal boost as industry faces workforce crunch

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To view the past issues of the UCA magazine you must be a member of SME/UCA.

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