All posts by hlancey@bloomberg.net

KBR Inks MOUs for Projects in Korea, Denmark

Ammonia, Asia, Denmark, Hydrogen, News Briefs

KBR announced on Nov. 14 that it has signed a Memorandum of Understanding (MOU) with Korea-based ISU Chemical for a commercial ammonia cracking project to be based in Ulsan, Korea. The project will employ KBR’s H2ACT℠ ammonia cracking technology.

KBR will provide licensing, proprietary engineering design, proprietary equipment, and catalyst for the planned 10 mt/d hydrogen production unit, with operations scheduled to commence in the first half of 2026. 

“We are pleased to extend our collaboration with ISU Chemical to include this important project. This paves the way for the wider adoption of ammonia cracking for the production of hydrogen in support of the transition to a hydrogen economy,” said Doug Kelly, KBR President, Technology. “KBR is continuing to lead energy transition projects globally, and along with ISU, we look forward to demonstrating the value of clean ammonia and hydrogen towards achieving our net zero targets.” 

KBR on Nov. 9 announced that it has been awarded a Front-End Engineering Design (FEED) contract by Fidelis New Energy for Project Fyrkat, a liquid carbon dioxide (LCO2) receiving terminal at the Port of Aalborg, Denmark. KBR will provide engineering to support the LCO2 handling and storage facility, as Fidelis New Energy aims to help global decarbonization. 

Project Fyrkat is one of the first onshore CO2 sequestration facilities, and is part of a larger initiative, Project Norne, which expects to store more than 20 million mt of CO2 per year by 2030. This equates to around half of Denmark’s yearly emissions.

Topsøe Inks Contract with Allied Green Ammonia

Ammonia, Australia, Green Ammonia, Green Hydrogen, News Briefs

Perth-based Allied Green Ammonia Pty Ltd. has selected Danish firm Topsøe A/S to supply the green ammonia technology for its proposed ammonia plant on the Gove Peninsula in the Northern Territory of Australia, Topsøe reported.

The Danish company said it is also in discussions with Allied Green for the supply of an undisclosed quantity of Solid Oxide Electrolysis Cells (SOEC) to produce green hydrogen.

Allied Green is proposing to develop a green hydrogen and green ammonia production facility to produce 165,000 mt/y of green hydrogen, which it has said will be used to produce 912,000 mt of green ammonia annually.

According to Topsøe, the green ammonia plant will have a production capacity of 2,500 mt/d and is planned to start producing in the fourth quarter of 2028 or first quarter of 2029

Allied Green in September signed a Project Development Agreement (PDA) with Spanish global engineering company Técnicas Reunidas SA to initiate the first phases of the project (GM Sept. 29, p. 28). At the time, the Australian company said the Basic Engineering Design (BED) and Front-End Engineering Design (FEED) were to start shortly.

Allied Green plans to export the green ammonia output to the expanding Southeast Asian markets, where demand for e-fuels continues to grow.

ATOME Granted Free-Trade Zone for Villeta Project

Ammonia, Calcium Ammonium Nitrate, Europe, Green Hydrogen, News Briefs

UK-based ATOME Energy announced that its 145 MW Villeta Project in Paraguay has been granted Free-Trade Zone (FTZ) status by Presidential decree. This is only the sixth FTZ in Paraguay. It will provide ATOME with major tax exemptions.

“Through successive administrations it has been both consistently crystal clear that Paraguay is open for business and encourages and supports serious foreign investors and investments,” said ATOME Chair Peter Levine. “We are greatly honored by President Peña by his signing of the decree for the tax-free zone in Villeta, and we are grateful for the support and trust he and his Ministers have given to us in this important landmark project for the country of Paraguay.”

ATOME announced on May 22 that it decided to use its planned green hydrogen/ammonia complex in Paraguay (GM May 12, p. 1; May 26, p. 31) to produce 250,000 mt/y of green calcium ammonium nitrate. ATOME hopes to make a final investment decision and begin construction by the end of the year at its 75-acre site in Villeta, with the project scheduled to start production in second-half 2025.

OCP, University, Regrow Partner on MRV Project

Africa, News Briefs, U.S.

OCP Group, the University Mohammed VI Polytechnic (UM6P), and American agriculture startup Regrow, Durham, N.H., have signed a strategic partnership to develop an MRV (Measuring, Reporting, and Verification) system specific to African soil.

The system is based on the biogeochemical DNDC model (DeNitrification-DeComposition), a globally calibrated and validated scientific model, recognized by reference standards. The objective of the project is to explore the potential of soil to sequester carbon, boost its fertility, and improve equitable access to the carbon market, thereby promoting soil health on the continent.

The project will provide African farmers with access to a state-of-the-art MRV system at a competitive cost compared to conventional MRV systems. It will also encourage them to adopt sustainable agricultural practices, improve their soil health and yield, and develop additional income streams through carbon credits.

Russia Boosts November Fertilizer Export Quota

News Briefs, Nitrogen, Russia

Russian Prime Minister Mikhail Mishustin has signed a decree to boost the quota for exports of fertilizers – mainly nitrogen and complex fertilizers – until Nov. 30 by 2.2 million mt, Bloomberg reported, citing a TASS report. The total size of the quota for the June 1-Nov. 30 period will now be more than 18.5 million mt.

It was reported last month that the Industry and Trade Ministry was considering increasing the export quota for the June 1-Nov. 30 period by 2.2 million mt (GM Oct. 13, p. 24). Russia had set an initial total export quota of more than 16.3 million mt for that period.

The Industry and Trade Ministry will now be tasked with distributing the additional quota volumes among exporters.

LSB to Consolidate Six Companies as LSB Chemical LLC

Featured, Nitrogen

LSB Industries Inc. on Nov. 16 announced that, effective Jan. 1, 2024, the entities currently known as Cherokee Nitrogen LLC, El Dorado Nitrogen LLC, El Dorado Chemical Company, El Dorado Ammonia LLC, EDC Ag Products Company LLC, and Pryor Chemical Company will be consolidated under the LSB Chemical LLC name.

LSB said the decision to merge and consolidate these businesses will “create a more cohesive and streamlined operation.” LSB said the consolidation will not result in any disruption to the supply chain or the continued operation of its facilities.

“Bringing these entities together will enable us to leverage our combined expertise and resources and enhance our overall efficiency and effectiveness in serving the needs of our customers,” LSB said in a statement. “Our suppliers and contractors play a pivotal role in this effort by providing an uninterrupted supply chain, from supplying raw materials to providing the products and services required to safely maintain the reliability of our plants.”

LSB said additional materials and communications, including updated banking and other information, will be conveyed as the effective date approaches. It urged customers to reach out directly with any questions regarding the consolidation, however.

“We appreciate your continued support as we navigate through this consolidation process,” the company said. “We are excited about the opportunities that this consolidation presents, and we want to thank you for being a valued partner.”

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Market Watch, Northern Plains, Northwestern Europe, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf/Tampa:

No changes were reported to the Tampa ammonia price, which closed at $625/mt CFR for November, up from October’s $575/mt CFR.

US Imports:

September ammonia imports totaled 178,939 st, according to US Census Bureau data, down 20.5% from 225,095 st in September 2022. July-September imports were 522,347 st, falling 18.8% from the year-ago 643,611 st.

Canada sent 290,155 st in July-September, Trinidad and Tobago shipped 203,853 st, and Argentina added 7,166 st.

US Exports:

Ammonia exports firmed 24.8% in September, to 153,090 st from the year-go 122,655 st. July-September exports totaled 402,927 st, however, down 3.9% from the year-ago 419,122 st.

Morocco was the top export destination for July-September with 129,517 st, followed by Norway with 69,198 st. The UK slid into third place with 37,992 st, ahead of 35,274 st to the Netherlands.

Eastern Cornbelt:

Ammonia remained at $725-$750/st FOB regional terminals in Illinois and Indiana, depending on location and producer, with the Lima, Ohio, market reported at the $750/st FOB level.

Western Cornbelt:

The ammonia market was unchanged at $715-$725/st FOB in the Western Cornbelt, with the low in Nebraska and the high in Iowa and Missouri.

Northern Plains:

Ammonia in the Northern Plains remained at $750-$775/st FOB regional terminals, with the low reported at Velva, N.D. Delivered ammonia prices were estimated in the low- to mid-$800s/st in the region, though no official offers were on the table in mid-November.

Black Sea:     

Efforts by Russia to begin serious exports of ammonia out of the Black Sea were set back after Uralchem said the pipeline to the port of Taman, in the Eastern Black Sea, will not be ready for use until later in 2024.

Uralchem previously expected the pipeline would connect to the port by the end of 2023 to allow for 1 million mt/y of ammonia to be shipped out. The plan was to increase both the pipeline’s throughput and the loading capacity of the port to allow for more than 2 million mt to be exported by 2025.

As expected, sources now say Uralchem will be targeting the Turkey market from this port.

Northwest Europe:  

There was no spot business to report in Northwest Europe during the week, sources said. The only tons coming into the market were governed by contracts with carefully guarded prices.

Urea

Bangladesh, Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, ethiopia, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, Pakistan, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

US Gulf:

NOLA urea prices continued to fall during the week, with new trades reported in the $323-$335/st FOB range for November-December barges, down from last week’s $340-$350/st FOB range. There were also reports of brokered tons trading for as low as $313/st FOB for January.

US Imports:

Urea imports for September moved 6.3% higher year-over-year, to 268,347 st from 252,481 st. July-September imports softened 11.1%, however, to 509,322 st from 572,716 st in 2022. July-September imports from Russia totaled 186,090 st, Qatar sent 109,128 st, and Canada shipped 82,925 st.

US Exports:

July-September urea exports totaled 255,831 st, down 58.4% from the year-ago 615,399 st. September exports fell 50.4%, to 105,094 st from the prior-year 212,080 st. Exports to Canada totaled 85,937 st in July-September, followed by 76,956 st to Chile and 69,814 st to Mexico.

Eastern Cornbelt:

Urea slipped to $405-$435/st FOB in the Eastern Cornbelt, with the low confirmed at Ottawa, Ill., and LaSalle, Ill., for November-December tons. The Cincinnati, Ohio, market was quoted at $405-$410/st FOB, while pricing out of Michigan warehouses was reported in the $445-$465/st FOB range.

Western Cornbelt:

Urea remained in a broad range at $395-$440/st FOB in the Western Cornbelt, with the low reported at St. Louis, Mo., and the high in Iowa on a spot basis.

Northern Plains:

Urea prices were under pressure in the Northern Plains. The St. Paul, Minn., market was down to $410/st FOB for the latest offers, below the prior $430/st level. Delivered urea was reported at $430-$470/st in the region, with the low confirmed for unit trains, down from the previous $480-$510/st DEL range in the region.

Northeast:

The latest urea pricing in the Northeast was reported at $432-$440/st FOB for November-December, down from last week’s $440-$450/st FOB and the $460-$470/st FOB range reported in late October.

Eastern Canada:

Urea pricing in Eastern Canada narrowed to C$710-$725/mt FOB in mid-November, down from the previous high of C$745/mt FOB in late October.

Black Sea:     

The downward push on urea prices has hit the Black Sea region. Sources now put the price for prilled urea at $330/mt FOB.

India: 

Sources in Asia are firm in their expectations that India’s next urea tender will not come until after the Indian Potash Ltd. (IPL) tender’s Dec. 20 shipping deadline has passed, and possibly not until mid-January 2024.

After buying about 1.7 million mt in the IPL tender, India has become more comfortable with its estimated urea supply. The timing of the next tender will depend on how many tons farmers order for their 2024 needs, sources said. Unexpectedly high demand took the government by surprise in 2023, increasing the pressure to buy large quantities in each tender. Barring any major shift in demand, sources believe India will need to purchase 1.0-1.5 million mt in the next tender.

One argument for waiting until mid-January, said one trader, is that the bulk of the purchases might arrive after the April 1 start of the new fiscal year, deferring payment to the 2024/25 budget. At the end of each fiscal year, India’s urea buying houses are often limited on what they can take due to restrictions from the treasury.

Pakistan:       

The government previously authorized Trading Corporation of Pakistan Ltd. (TCP) to secure more urea, leading the company to call two tenders for 100,000 mt each. So far, little information has been reported about either tender.

The first tender closed on Oct. 31 with few reported offers. No data regarding tonnage or prices offered have been made available. Sources noted reports of recent freight market inquiries for urea shipments to Pakistan, however, leading traders to think some arrangement has been made.

The second tender closed this week, also with few details revealed. Aditya Birla may have submitted the lowest offer at $389/mt CFR for the full 100,000 mt, reports suggested, translating to a netback of around $360/mt FOB if the tonnage ships from China.

The current limits placed on Chinese exports have led sources to think the tons will come from the Arab Gulf, however, or possibly Vietnam.

Bangladesh:  

A Bangladesh Chemical Industries Corp. (BCIC) tender for two lots of 50,000 mt of bagged granular urea closed on Nov. 14. Sources said BCIC received only one offer for one lot.

Aditya Birla reportedly offered two cargoes of 25,000 mt each at $498-$506/mt CFR bagged. When the tender was initially called, sources thought the material would come from China. Now, with Chinese export restrictions in place, sources named Vietnam as the most likely supplier.

Indonesia:     

Pupuk closed a tender offering 5,000 mt of prilled urea on Nov. 15. Sources originally said Pupuk received one confirmed bid at $350.80/mt FOB, though a second bid may have been submitted in the $360s/mt FOB, said one trader as Green Markets went to press.

Even if the winning bid lands in the $360s/mt FOB, the price will fall significantly below the last bit of prilled business. The country’s last tender closed at $387/mt FOB in October.

Sources speculated that no more granular urea will be offered until 2024. One trader said the general feeling is that Pupuk has used up all of its granular export allotments for 2023. Even when new allotments are issued for the next year, exports are unlikely to commence until March 2024, after the government ensures a plentiful supply for the domestic market. Indonesia’s first-quarter exports are traditionally the lowest of the year.

Middle East: 

The offers into the Ethiopian Agricultural Businesses Corp. (EABC) tender indicated a price of $375/mt FOB for December shipment. The price was up for January, to $382-$383/mt FOB. While no award has been issued in the EABC tender, sources said buyers will most likely accept the Arab Gulf material being offered for December and January.

The December material was offered by Fertiglobe out of the UAE. Other tons offered to Ethiopia include two cargoes from Saudi Arabia for January, March, and April loadings.

Producers are currently focused on fulfilling orders related to the IPL/India tender. Both buyers and sellers are nervous about putting forward a firm price for new business due to the shifting nature of the market. The producers seem more interested in formula-based arrangements rather than entertaining any straightforward spot deals.

Egyptian producers have stepped away from their small deals into Europe and appear to be focused on supplying material for the EABC/Ethiopia tender. Sources said small lots were being offered into Europe at sub-$370/mt FOB levels, but with nothing confirmed at press time.

At the same time, at least five 50,000 mt cargoes of granular urea were offered into Ethiopia for delivery through May 2024. Egyptian product was offered at $387-$397/mt FOB for January shipment, a small slide in prices, but one that sources said fits with the general trend of the market.

Egyptian producers have become a major supplier to Ethiopia. So far this year, Ethiopia has taken 402,000 mt from Egypt, accounting for 66% of its urea imports.

China:

Sources said only small lots of 5,000-10,000 mt are now being approved for export from China. The return to export limitations came as the government sought to keep domestic urea prices down by forcing a buildup of large reserves in local warehouses.

The decision to restrict exports does not seem to have impacted any of the larger lots that were previously approved for export to India. However, tonnage that was not already cleared when the restrictions kicked in last week will not be permitted to ship, said sources.

The price for exported material has not been greatly affected. Prilled urea remains centered at $370/mt FOB, sources said, with deals reported on either side, while granular urea remains in the upper-$370s/mt FOB. Discussions for prilled deals were reported at $360/mt FOB and granular at $365/mt FOB, but so far nothing has been confirmed at those levels.

The export restrictions have reduced the quantities expected to ship to India under the IPL tender. Shortly after the tender closed in October, industry watchers estimated that 300,000 mt or more could be sent. Now, sources said India will be lucky to receive 100,000 mt from China.

India’s loss of Chinese tonnage could be seen as a gain for other producers. Some traders that had their Chinese product blocked from shipping have already approached Vietnamese suppliers, sources said. However, the slower loading process in Vietnam may bring traders uncomfortably close to the tender’s Dec. 20 shipping deadline, one trader noted.

ETG of Dubai has reportedly included three cargoes of Chinese product in its March, April, and May offers in the Ethiopian tender. Sources said the move makes sense, as many expect the export restrictions to be eased by the second quarter of 2024.

Ethiopia:       

The EABC tender, for 562,000 mt to be delivered through May 2024, closed on Nov. 14. Seven companies offered tons in 11 lots of 51,000 mt each. The offers were all priced on an FOB basis, with bagging costs included. Shipment will reportedly be handled by EABC.

Fertiglobe offered tons from the UAE at $375/mt FOB into the first lot for December shipment, while Indorama offered material at the same price. Due to the lower freight rates available from the Arab Gulf compared to West Africa, sources expect Fertiglobe to get the award.

The second lot, for January shipment, had offers from Indorama at $375/mt FOB, Saudi Arabian material offered by ETG at $383/mt FOB, and Samsung – backed by an Egyptian producer – at $387/mt FOB. The freight advantage from Saudi Arabia over Nigeria will likely give ETG the award, sources speculated.

The rest of the lots showed low offers from ETG, with sources ranging from China, Egypt, and Saudi Arabia.

Lot Shipping Month Offering Company US$/mt FOB Source
1 December Fertiglobe 375.00 UAE
    Indorama 375.00 Nigeria
2 January ETG 382.61 Saudi Arabia
    Indorama 375.00 Nigeria
    Samsung 387.17 Egypt
3 January ETG 397.28 Egypt
4 February ETG 377.75 Saudi Arabia
5 February ETG 397.28 Egypt
6 March ETG 387.26 China
7 March ETG 387.56 Egypt
8 March ETG 382.60 Saudi Arabia
9 March ETG 376.77 Egypt
10 April ETG 376.56 China
11 May ETG 397.28 China

Brazil:

Urea import prices in Brazil fell 5.4%, to $345-$360/mt CFR from last week’s $365-$380/mt CFR. Players are estimating a 15-25% reduction in safrinha demand due to low corn prices and dry weather in the north, and excessive rains in the south.

The Rondonópolis market continued to lose traction due to slow demand. Pricing was noted at $510-$530/mt FOB ex-warehouse, below last week’s $520-$535/mt FOB, with most offers landing toward the bottom of the range.

UAN

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

US Gulf:

The NOLA UAN market remained at $255-$265/st ($7.97-$8.28/unit) FOB for the last confirmed trades, though no new business was reported during the week. “UAN is on the backburner, with the retailer focusing on ammonia, P, and K application,” said one contact.

US Imports:

July-September UAN imports firmed 26.3% year-over-year, to 569,101 st from 450,691 st. September imports were down 43.5%, however, to 95,171 st from the year-ago 168,507 st. Russia sent 315,631st for July-September, Trinidad and Tobago added 154,216 st, and Canada sent 99,254 st. 

US Exports:

UAN exports moved up 4.8% in September, to 229,623 st from 219,042 st in September 2022. July-September exports softened 10.8%, however, to 598,191 st from the year-ago 670,243 st. The US sent 169,142 st to Australia in July-September, ahead of 164,666 st to Argentina. France took 157,634 st. 

Eastern Cornbelt:

UAN-32 was pegged at $295-$310/st ($9.22-$9.69/unit) FOB in the Eastern Cornbelt for November-January tons, with the low confirmed at Cincinnati and Mount Vernon, Ind. The latest UAN-28 offers FOB Cincinnati were reported at $259/st ($9.25/unit) for November-December, $262-$267/st ($9.36-$9.54/unit) for 1Q, and up to $293/st ($10.46/unit) for 2Q shipments.

In the Great Lakes region, UAN-28 pricing out of Michigan terminals fell in the $278-$291/st ($9.93-$10.39/unit) FOB range, depending on location and time of shipment.

Western Cornbelt:

UAN-32 was steady at $295-$320/st ($9.22-$10.00/unit) FOB terminals in the Western Cornbelt, depending on location, with the high confirmed in Iowa and the low at St. Louis.

Northern Plains:

The latest UAN-32 offers were quoted at $315-$320/st ($9.84-$10.00/unit) FOB Winona, Minn., while UAN-28 pricing in the North Dakota market was pegged at $325-$335/st ($11.61-$11.96/unit) DEL for tons from Canada.

Northeast:

The UAN-32 market was quoted at $265/st ($8.28/unit) FOB Baltimore, Md., and Fairless Hills, Pa., for November-December tons, with 1Q pricing at Fairless Hills pegged at the $275/st ($8.59/unit) FOB level. UAN-32 out of terminals in upstate New York remained at the $340/st ($10.63/unit) FOB level in mid-November.

The latest offers for 28-0-0-5S were pegged at the $277/st level FOB Baltimore.

Eastern Canada:

UAN-28 remained in a tight range at C$460-$469/mt (C$16.43-$16.75/unit) FOB in Eastern Canada, with the UAN-32 market unchanged at the C$535/mt (C$16.72/unit) FOB level on a spot basis in Ontario.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, Poland, U.S. Exports, U.S. Imports, Western Cornbelt

US Imports:

September ammonium nitrate imports firmed 23.0% year-over-year, to 18,088 st from 14,702 st in September 2022. Imports grew 46.2% in July-September, to 67,350 st from 46,065 st. Canada topped the July-September import list with 66,778 st. Vietnam sent 296 st, and China sent 235 st.

US Exports:

Ammonium nitrate exports popped up 150.4% in September, to 91,910 st from 36,707 st in September 2022. July-September totals rose 45.9% year-over-year, to 192,793 st from 132,123 st. Canada was the largest export destination in July-September with 105,101 st. Mexico received 47,728 st, and Poland took 20,944 st.

Western Cornbelt:

The ammonium nitrate market was unchanged at $330-$360/st FOB Missouri terminals, depending on location.

Poland:

Grupa Azoty increased its production of nitrogen fertilizers to 245,000 mt in October, up from 227,000 mt in September and 151,000 mt in October 2022, the company said in a market filing.

The company also reported that its production of “multi-component” fertilizers rose to 71,000 mt in October, up from 15,000 mt in September and 61,000 mt in October 2002.