Section: CRUNS Market & Features

With Europe facing a long-term shortage of natural gas, and Russia looking east for new customers, how will changing global gas markets affect production of key syngas-based chemicals?

Ammonia prices registered another week of losses at the start of January, with supply options continuing to outweigh demand in most regions. Prices have been falling steadily for the past twelve weeks, as the market rebalances after production curtailments across Europe for much of 2022. Steady falls in gas pricing over the past few weeks have put production costs firmly below today’s import price, with European production now scheduled to ramp up at many plants this month.

Due to the inherent nature of the renewable power, sizing eSyngas plants powered with renewable energy brings complexity normally not faced by natural gas-based facilities. In this article, Dr Raimon Marin and Dr Solomos Georgiou of AFRY discuss the application of AFRY’s state-of-the-art modelling tool to optimise the size and production of a green hydrogen system and a green ammonia plant based on given renewable power profiles and their associated variability (e.g., hourly, daily, seasonally, and annually).

The market is anticipated to correct lower throughout the rest of the first quarter. Once a clearer picture over seasonal fertilizer demand in Europe emerges, this could stabilise downward momentum.

Air Liquide presents the results of an internal study to identify preferred natural gas-based plant configurations at a methanol capacity of 250 t/d. Delivering small capacity plants requires a focus on the total cost of ownership (TCO) for the economics to be successful, in addition to the CO 2 footprint of the operation. As found by this study, SMR concepts are naturally power balanced for standalone greenfield operations and show no particular advantage for power import in a brownfield setting. POX and ATR cases are greatly improved and even advantaged in a brownfield setting compared to SMR when shifting from power balance to power import cases.

Advanced Methanol Amsterdam (AMA) is a production facility, that will be realised in the Port of Amsterdam's Biopark, which is destined to produce advanced methanol that meets the European renewable energy directive (RED) requirements. Once completed, AMA will be the flagship production site for GIDynamics and GIDARA Energy and for its High Temperature Winkler (HTW ® ) gasification technology. AMA will also be the first of its kind green methanol unit designed by Casale.

Market Insight courtesy of Argus Media

The ammonia market appears to be oversupplied as of the end of October 2022, with a ready availability of spot cargoes. Coupled with increased availability from European producers due to an easing of gas prices, this seemed to indicate bearish market sentiment for the immediate future.

Casale has developed a range of methanol-ammonia coproduction processes to match different requirements according to product capacity.

The curtailment of ammonia production in Europe and reduction in export supply from Russia has led to an unprecedented year for the merchant ammonia market.