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Author: meninderkaurdavies

Sulphur Industry News Roundup

Following the completion of expansion work on the ultra-sour gas Shah field in May 2023, production has been ramped up. Occidental, which owns 40% of the Shah project and which operates the field in conjunction with ADONC Sour Gas, reported in July that it had achieved record output at Shah, with gross gas sales reaching 722 million scfd in Q2 2023 (equivalent to 1.1 billion scf/d of raw gas, which is 23% H2S and 10% CO 2 ). The expansion has taken processing capacity at Shah to 1.45 billion scf/d and forms part of the UAE’s plans to achieve gas self-sufficiency by the end of the decade. The expansion was conducted by Saipem, who were awarded a $510 million contract in 2021 to expand output from 1.3 billion scf/d to the current 1.45 billion scf/d. Work was completed two months ahead of schedule, according to Occidental.

People

Metso Outotec’s annual general meeting (AGM) in early May approved the board of directors’ proposal to change the company name to Metso Corporation. “After the successful integration of Metso and Outotec, we will focus on growing a strong unified Metso company and brand,” says President and CEO of Metso, Pekka Vauramo. “We have combined two valuable companies into one strong Metso. Our focus is clear: we continue enabling sustainable modern life and transforming the industry with a clear strategy and strong culture, supported by a name that is short yet established and well recognized among all our stakeholders. Services are an extremely important part of our business, requiring a strong name.”

Market Outlook

Indonesian imports have increased in 2023 so far on a year earlier. As new nickel high pressure acid leach projects ramp up, demand for sulphur is expected to increase further. Swing buyers have been importing significant volumes of sulphuric acid, affecting short term sulphur demand in the second quarter. It remains to be seen if this will continue, we expect sulphur demand to ramp up further in the second half of the year, bringing import expectations for the year to around 2 million t.

Sulphur Industry News Roundup

Kazakhstan’s oil and condensate output increased by 7% from 1.79 million bbl/d to 1.92 million bbl/d in early June after sour gas reinjection operations resumed at the Kashagan offshore oil and gas development following a recent outage, according to the Kazkah Energy Ministry. Reinjection of sour gas into two wells resumed on 8th June, enabling operator the North Caspian Operating Company (NCOC) to boost oil and condensate production at a large artificial island in Kazakhstan’s Caspian Sea waters. Reinjection was paused on May 20th following the detection of sour gas during routine sampling and a subsequent integrity test. Kashagan normally produces about 300,000 barrels of oil per day. Kazakhstan expects Kashsgan to raise oil production this year to 18.2 million t/a from 12.7 million t/a in 2022.