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Magazine: Sulphur

Uncharted waters

The fragile ceasefire between the United States and Iran broke down at the start of July, just three weeks after the signing of the June memorandum of understanding, after Iran fired at several vessels who had failed to notify them of their transit of the Strait of Hormuz, and the US retaliated with a missile barrage. While the two month negotiation period it had specified to solve all of the outstanding issues between the two parties had always seemed over-ambitious, market participants had at least expected to have that grace period to arrange for new cargoes and tranship them through the Strait. Now that the ceasefire has ended early, markets are truly entering uncharted waters.

Price Trends

The global sulphur market has entered a holding pattern, as a wave of bearish sentiment has so far failed to move stubbornly high spot prices. The departure of a significant volume of product from the Middle East has emboldened buyers and shifted market sentiment firmly towards bearish, but at time of writing this has so far failed to translate into lower prices. With sellers in no hurry to lower prices and spot availability still tight, the market has stalled as both sides wait for the other to blink first.

People

BP has announced a number of changes to its leadership as part of a restructuring exercise instigated by new CEO Meg O’Neill. From 1st July 2026, the company will be organised around two distinct business segments – Upstream and Downstream – replacing the previous three-segment structure. Gordon Birrell has been appointed executive vice president, Upstream; and Richard Harding will be interim executive vice president, Downstream. Both bring decades of operational experience and leadership to their roles. A recruitment process is underway to appoint a permanent EVP Downstream.

Sulphur recovery contract for Tayseer Gas Project

Worley Comprimo, in partnership with BASF, has been awarded a contract to deliver engineering and licensing services for integrated gas treatment technology and sulphur recovery units at Oman’s Budour Tayseer Gas Project. The project is designed to produce 2 million scf/d of sweet gas, 950 m³/day of condensate, and 80 t/d of sulphur. It aims to strengthen Oman’s energy infrastructure by ensuring a reliable domestic gas supply under a design-build-own-operate-maintain framework, while supporting in-country value initiatives.