Magazine: 400 Mar-Apr 2026

Ammonia sentiment was overtaken this week by the escalating Middle East conflict and the effective closure of the Strait of Hormuz, which left vessels unable to enter or exit the Arabian Gulf. With maritime trade frozen, price indications for prompt Middle East business largely stalled. In normal conditions, the sudden removal of Gulf export flows would point to sharply higher prices, particularly given the already-tight global availability and surging urea values, but participants said the absence of tradable cargoes made it difficult to pin down an indication. The immediate knock-on was felt East of Suez, where the supply shock pulled southeast Asian values back up to around $470-480/t f.o.b. Prevailing length in the market has been reportedly absorbed, with buying interest strongest from east Asia and India.

Indian renewables developer ACME says that it will partner with the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) to set up a green methanol plant in Kendrapada, Odisha state. He proposal is for a 200,000 t/a plant, with ACME taking a stake via its ACME Akaysha Energy subsidiary, part of its green hydrogen business. ACME says that the project forms part of its plans to develop multiple low carbon hydrogen plants and downstream chemical production. The company is planning a large green ammonia facility in Gopalpur through a joint venture with Japan-based IHI Corporation. It is also developing a 2,200 t/d green ammonia project in Paradip with cooperation from the Solar Energy Corporation of India. The output of the facilities will be used both for domestic applications and for export.

Worley has been awarded a five-year engineering, procurement and construction management (EPCM) services contract by Energinet Brint A/S to support Phase 1 of the Danish Hydrogen Backbone pipeline. Danish Hydrogen Backbone 1 will establish a national hydrogen transmission network for Denmark, linking large scale green hydrogen production from wind and solar to Germany and wider European markets, supporting Europe’s energy supply.

A Ukrainian drone attack hit the Dorogobuzh nitrogen fertilizer plant, around 140 km east of the border with Belarus in the western Smolensk region, according to local press reports. At least seven people were killed and another 10 injured, according to Russian authorities. It appears that the nitric acid and ammonium nitrate plants were targeted, as well as facilities involved in the storage and transportation of ammonium nitrate, leading to extensive damage. The strike is part of an ongoing campaign by Ukraine against Russia’s oil, gas and chemical facilities.