Tag: Contract

We look at the future of polyhalite mining and its use as a fertilizer following Anglo American’s announcement that investment in its UK-Based Woodsmith mine will fall to zero in 2026 under current plans.

Fertilizer International presents a global round-up of current potash projects.

In our May/June issue I discussed the race to be the next major green shipping fuel, in which methanol and ammonia both remain significant contenders, but which methanol appeared to be pulling ahead in. But more recently, a few stories from the past few weeks have left me not quite as sure as I was about that. Firstly, there’s the news in our Syngas News section this issue that the FlagshipONE green methanol project in Sweden is being delayed and possibly abandoned, because demand for green methanol for shipping has not actually materialised as fast as was anticipated.

OCI Global says that it has reached an agreement for the sale of 100% of its equity interests in its Clean Ammonia project currently under construction in Beaumont, Texas for $2.35 billion on a cash and debt free basis. The buyer is Australian LNG and energy company Woodside Energy Group Ltd. Woodside will pay 80% of the purchase price to OCI at closing of the transaction, with the balance payable at project completion, according to agreed terms and conditions. OCI will continue to manage the construction, commissioning and startup of the facility and will continue to direct the contractors until the project is fully staffed and operational, at which point it will hand it over to Woodside. The transaction is expected to close in H2 2024, subject to shareholder approval.

In its most recent interim report, published on August 15, renewable energy developer Ørsted said that it was abandoning the FlagshipONE renewable methanol project because the anticipated market for green methanol as a marine fuel had not materialised as quickly as expected. The strategic decision comes nearly two years after final investment decision (FID) on the project.

Shell Deutschland has taken a final investment decision (FID) to progress REFHYNE II, a 100 MW renewable proton-exchange membrane (PEM) hydrogen electrolyser at the Shell Energy and Chemicals Park Rheinland in Germany. Using renewable electricity, REFHYNE II is expected to produce up to 44 t/d of renewable hydrogen to partially decarbonise site operations. The electrolyser is scheduled to begin operating in 2027. Renewable hydrogen from REFHYNE II will be used at the Shell Energy and Chemicals Park to produce energy products such as transport fuels with a lower carbon intensity. Using renewable hydrogen at Shell Rheinland will help to further reduce Scope 1 and 2 emissions at the facility. In the longer term, renewable hydrogen from REFHYNE II could be directly supplied to help lower industrial emissions in the region as customer demand evolves.

At the end of August, the Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) tendered for 35,000 tonnes of sulphur for September loading from Ras Laffan, with offer prices reported at or around $130s/t f.o.b., according to market sources. Bids were received at multiple levels, with market participants initially anticipating awards around the mid-$120s/t f.o.b. The tender result was higher than market expectations and would equate to delivered prices to key Asian markets at $150-155/t c.fr. But prices in China and Indonesia remained lower this week at around $140-145/t c.fr, with India at $145-150/t c.fr. Prices have increased steeply since Muntajat’s 25 June session, which was indicated awarded in the mid-$80s/t f.o.b.. and Muntajat posted its Qatar Sulphur Price (QSP) for September at $125/t f.o.b., up $19/t from $106/t f.o.b. in August. This represents the highest QSP since March 2023 at $133/t f.o.b., and reflects delivered levels to China nearing $150/t c.fr at current freight rates. Tight supply and strong downstream demand have pushed tender prices higher. Muntajat tenders were previously awarded at $92/t f.o.b. in April, up from $88/t in March and the low $80s/t f.o.b. in February.

Veolia says that its subsidiary Veolia North America has signed an agreement for the divestment of Veolia North America Regeneration Services, which includes its sulphuric acid and hydrofluoric acid regeneration activities for refineries, to private equity firm American Industrial Partners for $620 million. These activities represented revenues of around $350 million in 2023. The financial closure of the transaction is expected soon. Veolia’s Sulphuric Acid Regeneration Business includes its sulphuric acid and potassium hydroxide regeneration, as well as sulphur gas recovery, and sulphur-based products production businesses.

China’s acid production continues to grow as new smelters come on-stream. But high domestic demand from phosphate production as export restrictions are lifted and a shortage of copper concentrate may limit the potential for acid exports.

Saudi Aramco has sold another tranche of 1.54 billion shares, amounting to 0.64% of the company’s total ownership. The sale, at 27-29 riyals per share, was oversubscribed by a factor of five, making it more popular than the previous IPO, in 2019, which sold 1.5% of the company’s shares for a total of $29.4 billion. Foreign take up of shares was also higher this time, with more than half of sales to foreign investors, compared to 23% for the 2019 sale. However, it remains relatively small in scale compared to Saudi Arabia’s ambitions as part of its Vision 2030 plan to encourage more foreign direct investment and wean the country off its dependence on oil. Aramco is the world’s largest oil company in terms of both daily crude production and market cap, and remains 82% in the hands of the government and 16% held via the country’s sovereign wealth fund, the Public Investment Fund (PIF).