Section: CRUSU Industry News

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.

Bedeschi has been awarded a contract by Tecnicas Reunidas and Wison Engineering for the engineering and supply of new sulphur-handling equipment. Tecnicas Reunidas and Wison Engineering are working in a 70-30 joint venture partnership on the North Field Expansion Project (NFXP) Sulphur Project, which forms part of the overall Qatar North Field Expansion Project. Last year were awarded a $600 million contract to process and export sulphur from the projected expansion of the liquefied natural gas (LNG) facilities in Ras Laffan Industrial City. The new sulphur plant will have the capacity to process an average of 5,000 t/d of molten sulphur.

Worley has been awarded a contract to supply Chemetics’ CORESO2™ technology for a sulphuric acid plant and associated oxygen unit at the Arafura Rare Earths project, sited 135 km north of Alice Springs in Australia’s Northern Territory. A greenfield mine will extract and process neodymium and praseodymium to create ultra-strong permanent magnets for a range of applications, such as household electronics and high-performance motors for electric vehicles.

Arafura Rare Earths Ltd has awarded Worley subsidiary Chemetics Inc the contract to install Chemetics CORE-SO2™ sulphuric acid technology at its Nolans Project in the Northern Territory of Australia. The scope of the contract is to deliver the detailed engineering and supply of the sulphuric acid plant plus associated oxygen plant on a lump sum basis. The acid plant at Arafura’s Nolans Project will be designed to meet future emission performance and clean energy transition goals, utilising CORE-SO2’s high turndown capability and the potential to idle the plant while keeping the catalyst warm for extended periods of time, allowing the acid plant to operate with 95% reduced SO 2 emissions when compared to traditional double contact double absorption (DCDA) plants. High pressure steam production within the process will allow CO 2 - free electrical power to be generated. By removing the use of a diesel or natural gas start-up burner, further greenhouse gas emissions will be prevented.

CRU, a leader in sulphur industry market analysis, price assessments, consultancy and events, and Abu Dhabi-based UniverSUL Consulting LLC, dedicated to providing unbiased technical expertise in sour hydrocarbon production and sulphur recovery, have announced a formal partnership aimed at enhancing the value of industry events for the sulphur industry.

Lithium miner Ioneer Ltd has signed a non-binding Memorandum of Understanding with Shell Canada Energy for the supply of sulphur to Ioneer for its Rhyolite Ridge lithium-boron project in Esmeralda County, Nevada. Ionner said in a statement that “securing the supply of key reagents for ore processing is an important step along the critical pathway to developing the Rhyolite Ridge project”. Under the memorandum, Ioneer will purchase up to 500,000 t/a of high-quality sulphur from Shell, which would fulfil the estimated annual sulphur requirement for the Project.

Almalyk Mining and Metallurgical Company (AMMC) has awarded Metso Outotec a euro 70 million order for the delivery of two sulphuric acid plants to be built for AMMC’s zinc roasting facility in Almalyk, Uzbekistan. Metso Outotec’s scope of delivery includes the design and delivery of Planet Positive equipment for two gas cleaning and sulphuric acid plants, which will process all off-gases from the zinc roasters into industrial-grade sulphuric acid. In addition, Metso Outotec will deliver utility facilities, such as a common cooling tower system and a common air compressor system.

In its final report on the June 2019 explosion and fire at Philadelphia Energy Solutions in southwest Philadelphia, the US Chemical Safety Board has said that US refineries need to strengthen their safeguards surrounding the use of hydrofluoric acid, and has also recommended that the US Environmental Protection Agency take steps to improve its oversight of the chemical, which is used as an alkylation agent.

At the organisation’s first face to face meeting since covid, in Vienna in early October, OPEC+ ministers agreed to cut global oil supplies by 2 million bbl/d in November. OPEC+ is a group of 24 oil-producing nations, made up of the 14 members of the Organisation of Petroleum Exporting Countries (OPEC), and 10 other non-OPEC members, including Russia. In a statement, the group said the decision to cut production was made “in light of the uncertainty that surrounds the global economic and oil market outlooks.”

Saudi Aramco has confirmed a phased development approach for its $100 billion-plus Jafurah unconventional onshore gas project, which is expected to produce up to 2 billion cubic feet per day of gas by 2030, raising the company’s overall gas production capacity by 50% over that time frame. Aramco says that the first development phase for the Jafurah gas plant is likely to come on stream by 2025, and it is progressing with the phased development of a project that will reach a raw gas processing capacity of 3.1 bcf/d.