Category: Outlook & Reviews

A round-up of current and proposed projects involving non-nitrogen synthesis gas derivatives, including methanol, synthetic/substitute natural gas (SNG) and gas- and coal to liquids (GTL/CTL) plants.

Sulphur prices are expected to recover from declines in May and June and continue climbing over the coming months, though good availability will limit upside.

The refining industry continues to pivot towards Asia, with knock-on effects for sulphur output.

Sulphur prices in China are expected to recover with downstream demand anticipated to surge in the second half of the year and good affordability to support raw materials purchasing. Chinese nitrogen, phosphate, and potash prices have surged, driven by heightened demand for the summer corn application season. In particular, average 11-44 MAP prices jumped 16% from $390/t ex-works to $463/t in Hubei province. However, sulphur prices have taken a while to follow the trend on phosphate prices. Port prices have fluctuated in the range of $126-130/t c.fr since late March, and import prices fell from a high of $112/t c.fr to $100/t c.fr, capped by high port inventory and sufficient supply. Port inventories in China remain around 2.8 million tonnes, well above the 2022 average of 1.4 million tonnes and the 2023 average of 2.07 million tonnes. These elevated stock levels limited the upside for prices in China and provided buyers with options. At the start of July, Sinopec’s Puguang, the largest sulphur producer in China, increased its sulphur sales prices at Wanzhou port up $4/t RMB980/t, while its factory price at Dazhou was up RMB20/t at RMB950/t ex-works. These prices are considerably down from RMB1,600/t in December 2022 and RMB 2,945/t from mid-June 2022 and are the lowest since July 2023, but are still up from a low of RMB605-655/t at the end of August 2020.

A look at the safety challenges that face developers of ammonia-powered shipping vessels before it can become used more widely as a low carbon fuel.

Ammonia markets were quiet in June, though both CF Industries and Grupa Azoty were reported to be looking for July tonnes and the enquiry will test how tight the market is going forward. Algeria has traded in the $400-405/t f.o.b. range, suggesting c.fr values in Europe might be slightly higher at $450-460/t c.fr. Supply from Algeria has been and continues to be somewhat restricted because of constraints caused by the hot weather. Gas supply however is easing in Egypt and further ammonia exports should emerge shortly.

Prices in the Eastern Hemisphere, whilst still flat-to-firm, do not appear as supported as they have been over the past month, whilst indexes. There are still no signs of softening in the Far East although demand remains underwhelming and supply improving. While production in Indonesia is said to be back up and running, traders do not expect any spot cargo to emerge in July other than possibly some small part cargoes. August could see spot offers.

Industrial plants using synthesis gas at elevated temperatures risk metal dusting attack on the equipment, which are typically made of steels or Ni-based alloys. Parameters which impact the metal dusting risk are discussed and factors affecting the material selection and processing are described. One important focus is surface preparation, showing that grinding (40 grit) improves the metal dusting resistance compared to glass bead blasting and brushing. The surface treatment outweighs the impact of welds or the manufacturing route.

With all of the focus on low carbon ammonia and methanol developments, one could occasionally be forgiven for forgetting that most of the syngas industry relies upon natural gas as a feedstock, and that gas pricing and availability remain the key determinants of profitability for producers. As our article this issue discusses, even low carbon ammonia is likely to be largely based on natural gas, albeit with carbon capture and storage, at least for the remainder of this decade.

In 1967, Stamicarbon revolutionised the urea production process with the invention of the HP CO₂ stripper by Mr Petrus JC Kaasenbrood. At a time when there was an energy crisis in many parts of the world, the HP CO₂ stripper led to three main benefits: