Edition Tag: Nitrogen Syngas 2022-03-31

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

Switzerland-based EuroChem Group AG says it has entered into exclusive negotiations to acquire the nitrogen business of the Borealis group, after having submitted a binding offer. One of Europe’s leading fertilizer producers, Borealis operates fertilizer plants in Germany, Austria and France, as well as more than 50 distribution points across Europe. It supplies 3.9 million tonnes of fertilizer products per year, including 800,000 t/a of technical nitrogen solutions and 150,000 t/a of melamine via the Borealis LAT distribution network. It is a market leader in melamine, with its operations in Austria and Germany supplying primarily the woodworking industry. EuroChem says that melamine and technical nitrogen solutions represent important new business lines for the company to expand its nitrogen-based product portfolio in Europe.

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.

INEOS says that it is aiming to forward its plans for a ‘net zero’ future for its Grangemouth site in Scotland by inviting major engineering design contractors to tender for the next stage of the design of a world scale carbon capture enabled hydrogen plant and associated infrastructure.

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.