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LSB chemical plant in Alabama to lose some production after pipe ruptures

An ammonia plant at LSB's Cherokee Nitrogen Co. plant sustained a pipe rupture in what executives called a “freak” occurrence. LSB shares tumbled 13 percent on the news. The company is based in Oklahoma.
by Paul Monies Published: November 15, 2012
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Earlier this year, LSB had an explosion at an Arkansas chemical plant and took part of a Pryor plant offline after finding excess heat on a pipe. LSB said in May it would spend $6.5 million on parts and components to make repairs and refurbishments.

Executives said the Alabama plant is well-managed and has an excellent safety record. The outage may last up to five months.

“This is a pipe that cracked, and there's no way of knowing what caused it,” CEO Jack Golsen said. “This stops the ammonia production, but we can make nitric acid if we bring in ammonia and make solutions that we usually make at this plant.”

LSB said it had notified its insurer of the damage to the Alabama plant. The policy has a deductible of $2.5 million. The company's business interruption insurance for some lost profits and extra expenses kicks in after 30 days.

by Paul Monies
Energy Reporter
Paul Monies is an energy reporter for The Oklahoman. He has worked at newspapers in Texas and Missouri and most recently was a data journalist for USA Today in the Washington D.C. area. Monies also spent nine years as a business reporter and...
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