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Ballance Agri-Nutrients has obtained a short-term gas supply for its 260,000 t/yr Kapuni urea plant through March 2025, following the expiration of its long-term contract on September 30, 2024. The Kapuni plant depends entirely on natural gas for both feedstock and fuel in urea production, making it vulnerable to rising gas prices, which increase manufacturing costs.

This is Ballance's second short-term gas supply agreement for the plant as the company seeks both short- and long-term gas supply solutions. To secure its supply during the March-May autumn months, Ballance has increased imports of urea and other nitrogen products.

New Zealand's urea imports rose to 466,500 t in January-November 2024 from 460,535 t the previous year. The issue of affordable and reliable gas supply is expected to be a significant topic in New Zealand's upcoming election on November 7, 2025.