The Fertilizer Institute (TFI) spoke out against the introduction of the Senate’s version of the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011 (S. 1863). The legislation would impose a tax on Liquified Natural Gas (LNG) and Compressed Natural Gas (CNG) sold for use as motor fuels to provide incentives for increased domestic production of natural gas vehicles and the construction of a natural gas vehicle fueling infrastructure. TFI believes this policy is unnecessary and will artificially increase the demand for natural gas which could result in higher costs for domestic fertilizer manufacturers that rely on natural gas as the primary feedstock for the production of nitrogen fertilizers. In fact, the price of natural gas accounts for approximately 70 to 90 percent of the cost of nitrogen fertilizers. 

TFI President Ford B. West issued the following statement regarding the Institute’s position on this energy policy:

“As domestic manufacturers that compete in a  global market and rely heavily on the use of natural gas as both an energy source and an essential raw material or “feedstock” the fertilizer industry is concerned that this legislation could result in higher production costs, forcing good paying U.S. manufacturing jobs to overseas competitors.

“Subsidizing natural gas demand is simply unnecessary. The continued high cost of gasoline has already made natural gas an attractive alternative fuel. Our economy, its recovery and our energy security will be better served if the U.S. would develop an “all of the above” energy policy that ensures American manufacturing can continue to compete globally and keep jobs here. Our economy must have a diverse energy supply in order to help reduce price volatility in all energy sectors.”