Nitrogen+Syngas 366 Jul-Aug 2020
31 July 2020
PROJECT LISTING
A round-up of current and proposed projects involving non-nitrogen synthesis gas derivatives, including methanol, hydrogen, synthetic/substitute natural gas (SNG) and gas- and coal to liquids (GTL/CTL) plants.
• Prices are expected to hold at historically high levels as long as the Strait of Hormuz remains effectively closed. If the situation persists, further price increases are likely, which will only intensify the affordability crisis for global consumers.
Sulphur continued to break historic records in most key international markets at the start of May as the scarcity of spot supply propelled prices higher, which triggered production cuts at some downstream markets, and increased costs in other industrial sectors. The effective blockade of the Strait of Hormuz, which halted the flow of Middle East supply, has forced desperate buyers to compete for the limited available spot cargoes, primarily from North America. Although fresh transactions were limited, export and delivered prices climbed higher, and market sentiment remained jittery. QatarEnergy hiked its sulphur price to $740/t f.o.b., a new record high for this contract since its inception in August 2013.
Nitrogen markets, and urea in particular, have been impacted by a series of geopolitical shocks in recent years which have driven markets over and above normal market factors such as feedstock and shipping costs, crop prices etc.
For many years confined to pilot projects and feasibility studies, biomass based gasification is seeing rapid take up in China for methanol production and may mark a new era in syngas generation.
A market already characterised by tight supply has been thrown into chaos by the Iran war and reduction of phosphate exports from the Gulf at the knock on effect on sulphur prices, a key input into MAP/DAP production.
