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Magazine: Sulphur

Unintended consequences?

The modern sulphur industry is in effect a response to the environmental problems created by the presence of sulphur compounds in oil and gas, and the consequent release of sulphur dioxide when they are burned. The tens of millions of tonnes extracted, formed, traded and used for sulphuric acid production every year would otherwise be entering the atmosphere and causing health issues, especially in major cities, or returning as acid rain. One of the most recent step changes in sulphur recovery has come from the extension of rules on sulphur content of fuels that have been commonplace for road vehicles for many years into the maritime transport sphere. The International Maritime Organisation has mandated a reduction in sulphur content of bunker fuels to 0.5% worldwide, and 0.1% in busy shipping regions that have become designated emissions control areas (ECAs). Because bunker fuels were made from refinery residues, they often had high concentrations of sulphur in them; the limit before 2020 was 3.5%. As a result, a recent paper by two climate scientists calculates that global SO2 emissions have dropped by as much as 10% since 2020 because of the IMO limits. Given that atmospheric sulphur dioxide is responsible for an estimated 20-90,000 preventable deaths per year, this is surely a good thing.

Sulphur Industry News Roundup

Kazakhstan’s oil and condensate output increased by 7% from 1.79 million bbl/d to 1.92 million bbl/d in early June after sour gas reinjection operations resumed at the Kashagan offshore oil and gas development following a recent outage, according to the Kazkah Energy Ministry. Reinjection of sour gas into two wells resumed on 8th June, enabling operator the North Caspian Operating Company (NCOC) to boost oil and condensate production at a large artificial island in Kazakhstan’s Caspian Sea waters. Reinjection was paused on May 20th following the detection of sour gas during routine sampling and a subsequent integrity test. Kashagan normally produces about 300,000 barrels of oil per day. Kazakhstan expects Kashsgan to raise oil production this year to 18.2 million t/a from 12.7 million t/a in 2022.

Market Outlook

Indonesian imports have increased in 2023 so far on a year earlier. As new nickel high pressure acid leach projects ramp up, demand for sulphur is expected to increase further. Swing buyers have been importing significant volumes of sulphuric acid, affecting short term sulphur demand in the second quarter. It remains to be seen if this will continue, we expect sulphur demand to ramp up further in the second half of the year, bringing import expectations for the year to around 2 million t.

People

Metso Outotec’s annual general meeting (AGM) in early May approved the board of directors’ proposal to change the company name to Metso Corporation. “After the successful integration of Metso and Outotec, we will focus on growing a strong unified Metso company and brand,” says President and CEO of Metso, Pekka Vauramo. “We have combined two valuable companies into one strong Metso. Our focus is clear: we continue enabling sustainable modern life and transforming the industry with a clear strategy and strong culture, supported by a name that is short yet established and well recognized among all our stakeholders. Services are an extremely important part of our business, requiring a strong name.”