Section: CRUSU Industry News

Chinese refinery output has been steadily falling this year as covid-related lockdowns impact upon the economy. Figures from the National Bureau of Statistics showed that refinery output fell to 13.8 million bbl/d in April – down 2% year on year – then took a sharp fall in May to 12.6 million bbl/d, more than 10% down on the same time in 2021, when output stood at 14.1 million bbl/d. May’s figure was 12.7 million bbl/d, a modest increase on April, but still 1.6 million bbl/d down compared to May 2021. Refining margins have also been hurt by high oil prices due to the Ukraine conflict, dropping close to zero or even negative according to industry estimates.

The Jordan Phosphate Mines Company (JPMC) has signed a supply agreement with Germany’s LUMA-International Company.Under the terms of the agreement, JPMC will sell 850,000 t/a of phosphate rock to the German company at international market rates. The agreement was signed by JPMC CEO Abdulwahab Rawad and managing director of LUMA-International Ralf Keller, in the presence of JPMC Chairman Muhammad Thneibat. Thneibat expressed hope that the deal would open wider scopes of cooperation between the JPMC and German companies in the field of phosphate fertilizers, and Keller likewise said that his company was looking forward to more cooperation with the JPMC and new partnerships to produce phosphoric acid and phosphate fertilizers.

Researchers from Australia’s Monash University say that they have created a new generation of lithium-sulphur batteries which could provide a cheaper, cleaner and faster-charging energy storage solution that outlasts lithium-ion alternatives and is rechargeable hundreds of times without failing. The team has creating a new interlayer which allows for exceptionally fast lithium transfer, as well as an improvement in the performance and lifetime of the batteries.

German slurry handling specialist Vogelsang has just launched a new acidification technology which it claims will reduce ammonia emissions from agriculture, reducing up to 70% of ammonia to nutrient rich ammonium. Its new SyreN technology is an onboard sulphuric acid dosing system for tractors that treats slurry or digestate as it is applied to the land. It uses a front-linkage mounted unit to carry the acid, which also improves tractor weight distribution. The acid is dosed when the organic fertiliser is fed to the applicator, with a pH regulator automatically controlling and adjusting the flow. Nitrogen uptake of organic fertilizer is also increased by up to 1/3 as the ammonium is more easily metabolised by the soil. Results from a study in Germany showed that the acidifying slurry increased crop yield by up to 20%. The sulphur contained in the acid also becomes available to the plants as sulphate after spreading, eliminating the need for an additional pass over the field to administer a supplementary sulphur fertiliser, such as ammonium sulphate nitrate. At approximately 30 kg/ha, the amount of sulphur introduced into the crop with the SyreN system corresponds to the average amount of sulphur that is already applied to crops in the course of a growing season.

Russia’s invasion of Ukraine, the consequent sanctions imposed by European and North American countries, and fears over further sanctions and a widening of the conflict have had sent a systemic shock through the world trading system. Stock markets dropped sharply, and the Russian rouble lost 30% of its value. The most immediate short and medium term impact is likely to come from Russian banks being cut off from the SWIFT international payment system, making exports of commodities more difficult, although no direct restrictions or embargos have been imposed on Russian products as of time of writing.

Global demand for oil products has seen strong recovery in 2021, but depressed kerosene demand from the aviation sector continues to be a major barrier to full recovery, according to data and analytics company GlobalData. The company’s analysis of oil product flows suggests that when kerosene is excluded, oil product demand in Q3 2021 had fully recovered compared to the same period in 2019. However, demand for kerosene, mostly used for jet fuel, has hovered at around two thirds of pre-Covid-19 levels throughout the year, and when that is taken into account, total oil product demand was 3% below pre-Covid levels for Q3 2021. Kerosene demand saw the greatest impact from Covid-19 due to restrictions on air travel. While the sector recovered, to an extent, in the second half of 2020, recovery stalled in 2021 due to new waves of infections and restrictions, with new restrictions linked to the Omicron variant likely to have hit demand again in Q4.

DuPont has agreed to sell its Clean Technologies business for $510 million to an international private equity consortium, comprising BroadPeak Global, Asia Green Fund and The Saudi Arabian Industrial Investments Company (Dussur). The new, independent company has been named Elessent Clean Technologies and will be a global leader in process technologies to drive sustainability and carbon neutrality in the metal, fertilizer, chemical and oil refining industries. Elessent retains exclusive rights to the technologies, expertise, products, and services including: MECS® sulphuric acid and environmental technologies, BELCO® scrubbing technologies, STRATCO® alkylation technology and IsoTherming® hydroprocessing technology. Derived from the words “element” and “essential,” Elessent says that it will help customers produce, optimise or separate essential elements every day, creating clean alternatives to traditional industrial processes to minimise the impact on the environment while enabling our customers to produce essential elements critical to everyday life.

China’s private sector Shenghong Petrochemical refining complex is targeting a startup in late November, following the receipt of its first cargo of crude in October. The greenfield refining complex in the eastern Lianyungang petrochemical zone has a capacity of 16 million t/a, including a 320,000 bbl/d crude unit – the largest single stream CDU in China – and a 76,000 bbl/d naphtha reformer. Product capacities include 56,000 bbl/d of gasoline, 41,000 bbl/d of diesel and 32,000 bbl/d of jet fuel. Construction began in mid-2019, delayed from 2018 by late approval of its environmental impact assessment, but has been achieved within two months of the scheduled completion date in spite of the coronavirus pandemic. Shenghong Petrochemical is owned by Eastern Shenghong, a producer of petrochemical products and chemical fibres.

Lithium-boron miner ioneer Ltd has awarded DuPont Clean Technologies a contract for the license, engineering, and supply of proprietary equipment for a planned sulphuric acid plant at the company’s Rhyolite Ridge project in Nevada. DuPont will work with engineering partner SNC-Lavalin on the plant design, using MECS® sulphuric acid technology for the 3,500 t/d sulphur-burning unit, as well as controls that limit emissions to among the lowest in the world for this type of facility. DuPont will also supply its latest generation MECSSuper GEAR® ™ catalyst and other critical proprietary equipment. The contract is conditional on a final investment decision by the ioneer board of directors.

INEOS Enterprises has announced the completion of the sale of its Sulphur Chemicals business to International Chemical Investors Group, for an undisclosed sum. INEOS Sulphur Chemicals business is Spain’s largest dedicated manufacturer of sulphuric acid and oleum, serving clients in both agriculture and chemical intermediates via its 400,000 t/a plant in Bilbao. The business will become part of WeylChem’s advanced intermediates and reagents portfolio, which includes an existing sulphuric acid and oleum plant located in Lamotte, northern France. WeylChem is wholly owned by the International Chemical Investors Group (ICIG).