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Author: richardhands

CPECC to build Ar-Ratawi gas processing plant

TotalEnergies has awarded the China Petroleum Engineering & Construction Corporation (CPECC) the engineering, procurement, supply, construction and commissioning (EPSCC) contract to build its new Ar-Ratawi gas processing plant in Iraq. CPECC subsidiary China Petroleum Pipeline Engineering will build two midstream gas pipelines connecting the Majnoon and West Qurna 2 oilfields to Artawi-based processing plant. The planned gas pipeline infrastructure comprises a 114-kilometre sour gas pipeline built with 26-inch diameter pipes, an 83-kilometre, 20-inch sour gas pipeline, and an 83-kilometre, 20-inch sour gas pipeline. The awards form part of the TotalEnergies-led Gas Growth Integrated Project (GGIP) in Iraq, which is valued at $10 billion.

Karatau expansion onstream next year

EuroChem says that it expects the Phase III expansion project at its Karatau phosphate development in Kazakhstan to be onstream by 2026. In its Annual Report, EuroChem says that it signed an agreement with the China National Chemical Engineering Co. in May 2024 for the engineering, procurement, construction and commissioning of the chemical complex, and construction is now underway. The company says that it has also had state permits for the construction of additional sulphuric acid production, where the installation of large-capacity equipment is already underway and the first product is expected in 2026. The fertilizer plant is expected to have a capacity of around 1 million t/a, with a construction cost of $1.1 billion for the project. Phosphate reserves at Karatau are put at 41 million tonnes.

Works begin on Kaiyang LFP project

Guizhou Phosphorus Chemical Group has begun site clearing work in preparation for a major mining and downstream fertilizer and chemical project at Kaiyang in Guizhou province started. It is planned to complete the construction of the first phase of the 600,000 t/a lithium iron phosphate (LFP) production line by the end of 2025. The whole scheme is projected to cost $4.6 billion, with participation from the Guiyang Municipal Government and Guizhou Phosphorus (Group) Co., Ltd., China National Nuclear Huayuan Titanium Dioxide, China Mining Resources Group and other companies. The project comprises 1.4 million t/a of ferrous sulphate heptahydrate production, with co-production of 400,000 t/a of titanium dioxide, 600,000 t/a of iron phosphate, 600,000 t/a of lithium iron phosphate, 150,000 t/a of lithium carbonate, 10,000 t/a of lithium fluoride, 20,000 t/a of lithium hexafluorophosphate, 100,000 t/a of copper smelting, and phosphogypsum decomposition to produce sulphuric acid, with power cogeneration and other public utilities. Phosphate ore is processed to produce iron phosphate, which is then combined with ferrous sulphate, a byproduct of titanium dioxide production, to produce lithium iron phosphate, which is ultimately used in new energy vehicle batteries. It is expected that the first batch of production lines will be put into production in 2026 and the entire industry chain will reach full production in 2028. After completion, Guizhou will become the world's largest production base of phosphorus-based positive electrode materials, accounting for more than 30% of the national market share.

CIPL to build phosphoric acid plant by 2027

Caitlyn India Pvt Ltd (CIPL) has announced a $46 million investment to build a 50,000 t/a phosphoric acid plant in India. The plant aims to reduce import dependence and boost the country’s fertiliser self-sufficiency. Commissioning is planned for the financial year 2027. The facility, to be set up in a port-accessible industrial zone in southern India, will use hemihydrate-dihydrate technology to produce high purity phosphoric acid and cleaner gypsum by-products. A captive sulphuric acid unit will also be included to support efficient operations. Initially, the acid produced will supply Indian fertiliser manufacturers, with plans for captive use in future fertiliser production.

Price Trends

Ammonia benchmarks on both sides of the Suez were little changed in mid-June with a seemingly balanced supply-demand outlook, although those of a more bullish persuasion continue to support the notion that prices will soon – if they have not done so already – reach a floor. In Algeria, while activity was limited, producer Sorfert was believed to be seeking prices of $410415/t f.o.b. for July delivery, up $10-15/t and equivalent to >$450/t c.fr NW Europe. Imminent tariffs on imports of Russian fertilizers into the EU may trigger an uptick in downstream capacity utilisation across the continent.