Wednesday, May 25, 2011

Agrium - Moving to Nigeria

Agrium is shipping out, literally to Nigeria (link). Free markets have a way of voting with their feet. If market conditions, raw materials, or government policies don't work for a business they up and leave. I had wondered if closing the LNG plant would free up enough Cook Inlet gas to restart Agrium - boy was that bad idea.

Coming to a plant near you?

Years ago I worked on a job that packed up a chemical plant and shipped it overseas. I've seen industries pack up and go. Nobody is hanging around waiting for a pipeline. If Alaska wants a gas pipeline I suggest a 10 year tax holiday starting in 2020 and a guaranteed rational rate for the first 10 years after that.

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