
Fertilizer Industry News Roundup
Brazil’s state-controlled oil company Petrobras plans to resume construction of its UFN-III nitrogen fertilizer unit in Tres Lagoas, Mato Grosso do Sul state.
Brazil’s state-controlled oil company Petrobras plans to resume construction of its UFN-III nitrogen fertilizer unit in Tres Lagoas, Mato Grosso do Sul state.
Market snapshot, 2nd January 2025
While underlying supply and demand criteria continue to set floors and ceilings for nitrogen and other syngas derived products, political events as ever have the potential to derail all calculations. While much attention has focused on the US election, the escalating crisis in the Middle East continues to have the potential to threaten fertilizer trade in multiple ways. As this issue was going to press, Israel had just launched its retaliatory missile strike on Tehran, on October 26th, the latest in a series of tit for tat attacks between Israel and Iran, in particular an Iranian missile strike on Israel on October 1st. The Iranian government appeared to be downplaying the results as “limited”, but said that it considered itself “entitled and obligated to defend itself”.
In October, ammonia benchmarks were more or less stable across the board. West of Suez, supply from Algeria was constrained by an ongoing turnaround at one of domestic player Sorfert’s production units. Still, demand from NW Europe remained quiet, although CF was set to receive a 15,000 tonne spot cargo from Hexagon some time in November, reportedly sourced somewhere in the region of $530/t f.o.b. Turkey. While regional supply appeared tight, steadily improving output from Trinidad and the US Gulf could alleviate recent pressures, with many players of the opinion that Yara and Mosaic could agree a $560/t c.fr rollover for November at Tampa as a result.
An ammonium nitrate industry geared around producing explosives for the mining sector is now being joined by a major urea project and a number of renewables-based products for export of green ammonia.
QatarEnergy has announced its decision to build a new, world-scale urea production complex that will more than double Qatar’s urea production. The project is aiming to construct three ammonia production lines which will supply four new world-scale urea production trains in Mesaieed Industrial City. Total capacity for the new complex is projected to be 6.4 million t/a, more than doubling Qatar’s annual urea production from about 6 million tons per annum currently to 12.4 million tons per annum. Production from the project’s first new urea train is expected before the end of this decade.
Ammonia prices could remain stable for the duration of October, with any further increases likely to be capped by a lack of demand. The outlook for November is more positive for buyers, with prices set to ease off once turnarounds at key export hubs are concluded.
In spite of increasing environmental concerns over the use of coal as a feedstock, it continues to provide around one quarter of the world’s ammonia. But in a world that is decarbonising, is there still a future for coal-based capacity?
Urea revamp activities are performed to achieve improvements of the urea plant. Besides the typical capacity increase there are many options to reduce operation costs, increase plant availability or reduce environmental impact. In this article Marc Wieschalla of thyssenkrupp Uhde GmbH provides an overview of some of the options from an EPC contractor point of view.
One challenge of a green revamp by stepwise injection of green hydrogen into existing ammonia/urea complexes is to cover the nitrogen demand for the ammonia synthesis while stepwise reducing the front-end load, usually by applying a cost-intensive air separation unit (ASU). thyssenkrupp Uhde GmbH has developed an advantageous concept whereby, instead of an ASU, the nitrogen gap is closed by the introduction of pretreated reformer flue gas back into the ammonia process, with the side effect to also enhance CO2 production.