US Dakota Gas will start its own fertilizer sales in February after ending N-7 venture with OCI

HOUSTON (ICIS)–Dakota Gasification Company has confirmed that the company and fertilizer producer OCI decided earlier this month to dissolve their joint marketing venture N-7 and that it will begin its own fertilizer sales and marketing beginning 1 February.

This move comes after a strategic review by both parties it was determined to dissolve the joint venture, which was focused on selling nitrogen fertilizers, industrial ammonia, urea liquor and diesel exhaust fluid (DEF).

Since the partnership formed in July 2018, N-7 has shipped over 26.5 million short tons of product to more than 520 customers in 3,100 cities.

The company said it will continue to offer the same products moving forward including ammonia and urea, and rather than reduce their workforce this change has lifted levels.

“We have expanded our team with highly skilled professionals to enhance our ability to deliver exceptional products and service to our customers,” said a Dakota Gasification Company spokesperson.

The parent company said in a statement the decision reflects a mutual recognition of the unique growth opportunities available to both companies independently.

“This partnership allowed us to serve our customers with exceptional products while achieving significant milestones together,” said Daniel Gallagher, Basin Electric commodity sales & trading director. “Dakota Gas remains committed to producing and delivering high-quality products to our customers.”

The companies will honor all agreements previously undertaken by N-7 with a spokesperson saying, “the market has responded favorably to our decision”.

Netherlands-based OCI has not responded for comment but when the partnership was first announced it had stated N-7 would market and distribute product from Iowa Fertilizer Company, the OCI Partners operations in Texas and the Dakota Gas facility in North Dakota.

In addition, it intended to market any imported product from their operations outside North America.

Ending the N-7 venture follows the sale of Iowa Fertilizer Company and OCI Beaumont.