Short-term reprieve for Kapuni

The Kapuni gas to urea plant in Taranaki, operated by Ballance Agri-Nutrients, will continue operating until 31 December after short-term gas supply was secured in September.

“The co-operative continues to actively seek both short and long-term affordable gas supply agreements.

A short-term shutdown of the plant remains a possibility if further reliable and affordable supplies cannot be secured beyond 31 December 2025,” the company says.

The plant has operated since 1982 and employs more than 120 people. Approximately one third or 260,000 tonnes of New Zealand’s urea is manufactured at the plant annually, specifically for use as a nitrogen-rich fertiliser.

In August Ballance CEO Kelvin Wickham said Kapuni could shut for up to four months because gas was too expensive.

“We recognise the significant impact even a short-term shutdown would have on our employees, shareholders, the wider agricultural sector and the Taranaki regional economy,” he says.

“Like many businesses we’re impacted by dwindling NZ gas supplies.

We’ve been working hard to secure a reliable gas supply agreement at a price that is affordable for the business and our shareholders as NZ farmers and growers,” he said.

With spring here, the focus has been on ensuring enough nitrogen fertiliser is available for farmers and growers in the weeks ahead.

“We’ve secured contingency supplies of nitrogen for spring and our industrial customers have sourced alternative supplies for their GoClear customers, keeping NZ’s trucking fleet on the road.”