Magazine: 388 May-Jun 2020

Meena Chauhan, Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.

Ordinarily I try to choose a different subject each issue for an editorial, but as April lengthens towards May, and here in the northern hemisphere we start to see the first signs of summer, there unfortunately remains only one subject that is obsessing every industry, and that is the Covid-19 pandemic and its impact upon every aspect of our lives. Since our last issue we have all had to come to terms with ‘lockdown’ and ‘social distancing’, as the grim toll of deaths climbs in all regions. Here at BCInsight we are working without an office as best we can, and issues of Sulphur will continue to land in your email inboxes, but paper copies of the magazines may take longer to arrive, if at all, as shipping and customs procedures are tightened all around the world, and I can only apologise and ask that you bear with us.

How the macro market responds to the coronavirus pandemic over the months ahead and governmental response in different parts of the globe will likely have a lasting impact on the outlook for the sulphur market.

A look at the major factors influencing the sulphur market around the world.

West Texas Intermediate (WTI) forward oil prices for May dropped into negative territory during mid-April, on fears of lack of storage capacity to deal with the excess production. Forward prices for June were also nosing to equally unprecedentedly low levels.Elsewhere, Brent Crude spot prices dropped to $20/bbl, a fall of $50/bbl from the start of 2020.

Sulphur’s annual survey of recent, current and future sulphur recovery unit construction projects maps the developing shape of brimstone production from fuel and gas processing plants worldwide.

The Indonesian government’s decision to enforce the processing of more copper and nickel ores domestically rather than export them to China has led to the rapid development of domestic smelter capacity as well as nickel acid leaching projects.

Shell Global Solutions International BV (Shell) has awarded Worley two contracts for PT Pertamina EP Cepu’s (PEPC) new sulphuric acid plant in Indonesia. This plant is part of the Jambaran-Tiung Biru utilised gas field project for PEPC, which is a subsidiary of PT Pertamina-Indonesia’s state-owned energy company. Under the contracts, Worley will supply be supplying Chemetics’ cooled oxidation reactor (CORE) technology. This is the first time that CORE will be paired with Shell’s Cansolv SO2 capture technology. Worley gained the Chemetics technology as part of its Jacobs Energy, Chemicals and Resources acquisition last year. Cansolv controls the emissions and captures additional by-product value from the sulphur dioxide emitted from various refinery flue gas streams (such as cracking units, process heaters and boilers), sulphur plants and spent acid regeneration units. Sulphur dioxide can be recycled to the sulphur recovery unit to be produced as marketable sulphur or converted to sulphuric acid.

BASF has developed a new generation of promoter system compatible with MDEA solutions named OASE® yellow. The new promoter system increases the selectivity and capacity of the amine solvent, resulting in improved performance of tail gas treating units and allowing the processing of more sour crudes. A. Kern and G. Vorberg of BASF discuss two case studies demonstrating the benefits of OASE yellow.

When producing from shale reservoirs, technologies such as horizontal drilling and hydraulic fracturing have been used successfully to access hydrocarbons that otherwise could not be. A less publicised issue in producing from certain hot shale gas reservoirs (T > 100°C) is the presence of H2 S and organo-sulphur compounds in the production fluids. In trying to understand the non-biogenic sources of H2 S, Alberta Sulphur Research Ltd has been involved in studying the decomposition of chemicals used in hydraulic fracturing when exposed to high temperature and high pressure.R.A. Marriott, J.J. Marrugo-Hernandez and R. Prinsloo of ASRL discuss the findings of the study.