Terra Nitrogen Company, L.P. (TNCLP) produces and distributes nitrogen fertilizer products. Its principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which it manufactures at its facility in Verdigris, Oklahoma (Verdigris). TNCLP conducts its operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP). Terra Nitrogen GP Inc. (TNGP or General Partner) is the general partner of both TNCLP and TNLP and owns a consolidated 0.05% general partner interest in the Partnership. The General Partner is an indirect, wholly owned subsidiary of Terra Industries Inc. (Terra), a North American producer and marketer of nitrogen products, serving agricultural, industrial and environmental customers.
Urea Ammonium Nitrate Solutions
UAN is a liquid fertilizer and is odorless and does not require refrigeration or pressurization for transportation or storage. UAN is produced by combining liquid urea, liquid ammonium nitrate (AN) and water. The nitrogen content of UAN ranges from 28% to 32% by weight. UAN can be applied to crops directly or mixed with crop protection products, permitting the application of several materials simultaneously. UAN may be applied from ordinary tanks and trucks and sprayed or injected into the soil, or applied through irrigation systems. In addition, UAN may be applied throughout the growing season. UAN may be used for no-till row crops, where fertilizer is spread on the surface of the soil. During the year ended December 31, 2008, the Company produced and sold approximately two million tons of UAN.
The Company is the simplest form of nitrogen fertilizer and the feedstock for the production of other nitrogen fertilizers, including urea, AN and UAN. In 2009, the Company produced approximately one million ton of ammonia. It sold a total of 0.3 million ton of ammonia and consumed approximately 0.7 million ton of ammonia as a raw material to manufacture its other nitrogen products.