Tag: Urea

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.

Ammonia benchmarks west of Suez remain supported by limited availability at key regional export hubs amid increased potential for cargoes to arrive from the East, where availability is far healthier, and prices appear under pressure. The disparity in prices was illustrated towards the end of August, when Nutrien sold 25,000 tonnes to multiple buyers in NW Europe for 1H September delivery at $550-555/t c.fr. When netted back to Trinidad, the price marks a sizeable premium on the $375/t f.o.b. last achieved by Nutrien back in late June, although given that last business in Algeria was fixed at $520/t f.o.b., it appears there is room for delivered sales into Europe to move up further. Regional availability is still limited, with extreme weather conditions in the US Gulf and North Africa potentially impacting supply further over the coming weeks.

Part 1 of this series on stripper efficiency issues provided a brief history of the CO₂ stripping process and discussed how the invention of the HP CO₂ scrubber back in the 1960s revolutionised urea technology. In part 2 we take a look at how high liquid load can affect stripper efficiency.

Casale, Saipem, Stamicarbon & Toyo Engineering Corporation showcase a selection of innovative technologies that have recently been brought to the market.

Ammonia markets were quiet in June, though both CF Industries and Grupa Azoty were reported to be looking for July tonnes and the enquiry will test how tight the market is going forward. Algeria has traded in the $400-405/t f.o.b. range, suggesting c.fr values in Europe might be slightly higher at $450-460/t c.fr. Supply from Algeria has been and continues to be somewhat restricted because of constraints caused by the hot weather. Gas supply however is easing in Egypt and further ammonia exports should emerge shortly.

Prices in the Eastern Hemisphere, whilst still flat-to-firm, do not appear as supported as they have been over the past month, whilst indexes. There are still no signs of softening in the Far East although demand remains underwhelming and supply improving. While production in Indonesia is said to be back up and running, traders do not expect any spot cargo to emerge in July other than possibly some small part cargoes. August could see spot offers.

Hanwha Corporation and INEOS Nitriles have announced their intention to collaborate in a study for a new low-carbon ammonia facility with carbon sequestration in the USA, with a capacity of more than 1 million tonnes per annum. The location of the plant is yet to be determined. The two companies have agreed heads of terms, under which Hanwha and INEOS will jointly explore the feasibility of a facility to meet the growing global demand for ammonia with low-carbon emissions. A final investment decision is planned for 2026 with planned commercial operation in 2030.

In 1967, Stamicarbon revolutionised the urea production process with the invention of the HP CO₂ stripper by Mr Petrus JC Kaasenbrood. At a time when there was an energy crisis in many parts of the world, the HP CO₂ stripper led to three main benefits:

Indian producers have begun producing nanofertilizers at scale with the backing of the national government, as part of efforts to improve nutrient use efficiency, limit fertilizer subsidies and reduce fertilizer import dependency. But some scientists have questioned the claimed benefits and the overall efficacy of these novel crop nutrient products.

Market as of 20th June 2024. Urea: Prices remain stable while the market awaits clear price direction on whether to hold current f.o.b. levels or to push higher.