Section: CRUSU Industry News

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.

Saudi Arabia’s Ras Al-Khair Industrial City has signed an industrial land agreement with local firm Gulf Copper to develop a copper smelting and casting plant at an investment $319.30 million. The project would be developed on a plot spanning more than 250,000 square metres in the industrial city. No construction timelines were given. The Saudi government has previously signed agreements with Trafigura and Saudi-based Modern Mineral Holding to develop a 400,000 t/a copper smelter at Ras Al Khair which would also include 200,000 t/a of zinc and 55,000 t/a of lead smelter capacity at a projected cost of $2.8 billion.

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.

At the end of June a three day strike among workers at Chilean state mining company Codelco paralysed copper output at the world’s largest copper producer. The strike was in protest at the threatened closure of the Ventanas smelter, which was the site of an alleged leak of sulphur dioxide on June 6th. Chile’s environmental regulator subsequently provisional measures for both Codelco and power company AES Chile after numerous people in the nearby towns of Quintero and Puchuncavi in central Chile, including hundreds of high school students and staff, showed signs of sulphur dioxide poisoning. The measures include the installation of a new temperature sensor to measure potential thermal inversions. Both companies have denied responsibility for the leak; Codelco says that its air quality stations recorded normal levels of SO2 during the time of the incident.

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.

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.

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.

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.