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Category: Middle East

Sulphur Industry News Roundup

The Abu Dhabi National Oil Company (ADNOC) has awarded a $510 million engineering, procurement and construction (EPC) contract to Italy’s Saipem to expand production capacity at the Shah sour gas plant, as the UAE looks to increase its output of gas by 2030. The Optimum Shah Gas Expansion (OSGE) & Gas Gathering project has been awarded by ADNOC Sour Gas, a joint venture between ADNOC and US energy major Occidental. The contract will increase gas processing capacity at the Shah plant by 13% per cent to 1.45 bcf/d from 1.28 bcf/d by 2023 and supports ADNOC’s objective of enabling gas self-sufficiency for the UAE. The Shah gas plant currently meets 12% of the UAE’s total supply of natural gas, as well as producing 5% of the world’s elemental sulphur. The expansion will cumulatively represent a 45% increase on the plant’s original capacity of 1.0 bcf/d when it came on-stream in 2015.

Sulphur Industry News Roundup

Tecnimont has been awarded a $1.5 billion contract by Nigeria’s Federal Executive Council to carry out rehabilitation works at the Port Harcourt refinery in Rivers State, run by the state-owned Nigerian National Petroleum Company (NNPC). The contract covers engineering, procurement and construction (EPC) activities for a full rehabilitation of the Port Harcourt refinery complex, aimed at restoring the complex to a minimum of 90% of its 210,000 bbl/d nameplate capacity. Tecnimont says that the project will be delivered in phases from 24 and 32 months and the final stage will be completed in 44 months from the award date.

Nitrogen Industry News Roundup

Copenhagen Infrastructure Partners (CIP) has unveiled plans to build Europe’s largest power-to-ammonia facility at the Danish port of Esbjerg, based on electricity from offshore wind turbines. The company said the plant will consist of 1GW of electrolysis capacity, capable of supplying sufficient hydrogen to produce 300,000 t/a of ammonia, and that the ammonia will be used as both as agricultural fertiliser and as fuel for the shipping industry. Excess heat generated in the process would be used to provide heating for around one third of local households in communities around the plant, to be sited on the west coast of Denmark. The company has signed a memorandum of understanding for the project with companies from both the agriculture and shipping sectors, including Danish Crown, Arla, DLG, Maersk and DFDS Seaways. CIP anticipates that it would cost approximately $1.2 billion to build the facility. They are currently seeking investors for the project and expect that the investment decision would be reached by 2023. The plant could enter commercial operations in 2026.

Sulphur Industry News Roundup

Storm Uri which blanketed the southern states of the US with snow, and led to widespread power outages in Texas, has had a major impact upon US Gulf Coast and Southern-Midwest refined products supply. Most Gulf Coast refineries were shut down or forced to operate at reduced rates. IHS Markit estimated that more than 5.2 million bbl/d of Gulf Coast capacity and 730,000 bbl/d in PADD 2 was impacted by the winter weather at its height, and close to 20% of lower 48 US natural gas production was shut-in in the first half of February. A drop in crude oil production of between 2.2 and 4 million bbl/d was estimated.

Sulphuric Acid News Roundup

Copper major Freeport-McMoRan is reportedly on verge of finalising a $2.8 billion deal with China’s Tsingshan to build a copper smelter in Weda Bay, Indonesia. The Indonesian government said that the companies were aiming to conclude negotiations by the end of March. It also said that most of the financing will be borne by Tsingshan, with Freeport possibly only needing to provide funding for 7.5% of the total project cost. The smelter would have a copper concentrate input capacity of 2.4 million t/a.

Syngas News Roundup

Johnson Matthey (JM) has secured a multiple licence for China’s Ningxia Baofeng Energy Group’s latest project to develop five of the largest single train methanol plants in the world. Located at Baofeng’s Ordos City complex in Inner Mongolia, the five plants each have a planned capacity 7,200 t/d. Under the agreement Johnson Matthey will be the licensor of all five plants and supplier of associated engineering, technical review, commissioning assistance, and catalyst. The plants will take synthesis gas as a feed and use JM radial steam raising converters in a patented series loop. Within the design, there is potential for 1-2% more feedstock efficiency over the life of the catalyst. Thanks to JM’s methanol loop synthesis technology, the plants will provide enhanced energy savings along with low OPEX, CAPEX and emissions. When complete, the plants will represent JM’s 13th operating license in China for a mega-scale plant (>5,500 t/d) and the fourth JM methanol design licensed by Ningxia Baofeng Energy.