Category: Outlook & Reviews

CRU’s Nitrogen + Syngas conference returned to a face to face meeting for the first time in two years at the end of March this year.

For some years the fastest growing sector of the methanol market was Chinese olefins production. However, with growth there flattening out, it is traditional chemical uses which are taking over again as drivers of demand growth, with, longer term, a major prospect from fuel and energy applications.

Late February saw the diplomatic crisis between Russia and Ukraine abruptly devolve into all-out war, on a scale not seen in Europe since the collapse of Yugoslavia in the early 1990s – some would argue not since the end of the Second World War. At time of writing, the conflict is still barely two weeks old, but has already produced an unfolding humanitarian catastrophe, and a refugee crisis of massive proportions. But over the medium and longer term, together with the international sanctions that have swiftly followed, it also has the power to deliver an economic shock to commodities markets in particular and the world economy in general that may be as bad if not worse than the crash of 2008-9.

This case study refers to the carbamate condensers and separators in the urea recirculation and hydrolyser desorber section of a urea plant, operating under normal operation at 0.3 MPa and 75°C. After 48,000 hours of operation, during the turnaround of the urea plant, the diaphragm type instruments were sent to the original equipment manufacturer for inspection and refurbishment. In addition to damage of the diaphragm, crevice corrosion was found in the gasket area (see picture) posing a health and safety risk .

The ammonia market, already seeing record pricing in the wake of the winter’s gas price squeeze, is braced for even higher pricing in the wake of the Russian invasion of Ukraine. The impact upon gas prices has been most marked, with rates of over $65/MMBtu seen in European forward pricing as the threat of a cessation of Russian gas exports loomed. This will undoubtedly lead to widespread idling of ammonia capacity in Europe.

Market Insight courtesy of Argus Media

Saipem, Stamicarbon, Toyo Engineering Corporation and KBR showcase recent projects and latest technology for urea and nitric acid plants.

Dr M.P. Sukumaran Nair, formerly Secretary to Chief Minister, Kerala and Chairman, Public Sector Restructuring & Audit Board, Government of Kerala looks at the impact of the conflict in Ukraine on supply of fertilizer to India and the world.

The CRU Nitrogen + Syngas Conference returns to Berlin for a live event from 28-30 March 2022. The conference will be run as a hybrid event giving participants the option to attend live in-person or online via the virtual platform.

High feedstock prices and regulatory burdens continue to put pressure on European nitrogen producers to innovate.