All posts by mickeybarb@charter.net

Azerbaijan’s Port of Baku Starts Construction of New Fertilizer Terminal

Europe, News, News Briefs

Azerbaijan’s Baku International Sea Trade Port has announced the start of construction of a fertilizer terminal at its new facility in Alat on the Caspian Sea. The terminal is being jointly financed by the government of Azerbaijan and the Port of Baku, and is expected to be commissioned by the end of 2022, according to a Port of Baku press release.

The investment decision follows the completion of a feasibility study that showed “a significant potential” for transshipment of fertilizers from landlocked Central Asian countries to western markets via Azerbaijan.

Turkmenistan, Uzbekistan, and Kazakhstan have production capacity for various fertilizers, including urea, sulfur, and potassium carbonate that exceeds 6.6 million mt annually, according to the release.

All three countries have invested heavily in the construction of fertilizer production facilities to increase potential export volumes. The release highlighted Turkmenistan’s Garabogaz Fertilizer Plant, located on the Caspian Sea and inaugurated in Sept. 2018, can alone produce 1.2 million mt/y of urea, of which more than 90 percent is for export (GM Sept. 21, 2018).

According to the Port of Baku Director-General Taleh Ziyadov, the volume from Central Asia – primarily Turkmenistan – fertilizers transshiped via the port of Baku has increased more than 13-fold between 2018 and 2020, from 48,339 mt to 630,000 mt.

And the trend is accelerating, he said, with the port handling more than 450,000 mt of fertilizers in the first five months of 2021.

A new terminal will ensure reliability in Central Asia’s fertilizer supply chain and allow us to increase volume from Turkmenistan, Kazakhstan, and Uzbekistan, said Ziyadov.

The new fertilizer terminal will have capacity to handle 2.5 million mt/y. The project plans include two warehouses with a total capacity of 60,000 mt, as well as state-of-the-art conveyor systems to unload various types of fertilizers directly to warehouses or into wagons/rail hoppers at a newly-designed wagon loading station.

The port authority plans to lease the terminal operation through a long-term concession and is currently in negotiations with potential bidders.

Uzbekistan Fertilizer Plants Find Financing

Ammonia, Asia, News, News Briefs

Cyprus’s Ferkensco Management and Russia’s Gazprombank have inked two cooperation deals to finance the construction of a 495,000 mt/y ammonia plant in Uzbekistan’s Syrdarya region and a 900,000 mt/y complex ferts plant in the Samarkand region, according to a report by thetribune.com.  

The financial details of the cooperation deals have not been disclosed, but Ferkensco is implementing both projects. The Cyprus-based company acquired Uzbekistan’s state-owned defunct Samarkandkimyo in August 2019, and plans to build the complex fertilizer plant on Samarkandkimyo’s former production site

The ammonia project is already underway, with site surveys reported to have been completed late last year. Discussions with Switzerland’s Casale SA for supply of the ammonia technology are reported to be ongoing.

Commissioning of the complex fertilizers plant is targeted for 2023, according to the report.

Uralkali Inks $1.25 B Green Loan

News, News Briefs, Russia

Uralkali, Moscow, has signed a sustainability-linked syndicated loan agreement for $1.25 billion with 18 international and Russian banks and financial institutions, which it said is the largest ever in Russia and the CIS.

Sustainability key performance indicators, to which the loan agreement is linked, cover ecological issues as well as the safety operations of  the company, according to a June 9 statement by the Russian potash producer.

The base interest rate is LIBOR + 190 bps margin with a loan maturity of five years.

Uralkali said the loan will be used for refinancing of its existing loans and for general corporate purposes.

“Raising ESG financing is an important step in the development of the ESG strategy of the company and reflects our efforts in the development of production safety and the environmental protection in the region of operation,” said Uralkali CFO Anton Vishanenko.

Yara, Trafigura Ink MOU on Clean NH3

Ammonia, News, News Briefs, Scandinavia

Yara International ASA, Oslo, and Singapore-based independent commodity trading company Trafigura Pte Ltd. jointly announced on June 7 that they had signed a Memorandum of Understanding (MOU) to collaborate on the development and promotion of ammonia as a clean fuel in shipping and to explore possible opportunities to work together on certain clean (green and blue) ammonia fuel infrastructure and market opportunities.

Under the MOU, the two companies said they intend to collaborate on the supply of clean ammonia by Yara to Trafigura Group companies, and also to explore joint R&D initiatives for clean ammonia application as a marine fuel. They also plan to explore the development of new clean ammonia assets, including marine fuel infrastructure and market opportunities.

Both Yara and Trafigura have taken a number of steps to progress towards making the transition to a greener economy a reality, but this is the first time the two companies have collaborated on initiatives that will establish themselves in the clean ammonia value chain.

“Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution, where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem,” said Yara Clean Ammonia President Magnus Krogh Ankarstrand.

Reducing shipping emissions is a vital component of the fight against global climate change, yet greenhouse gas emissions from the global maritime sector are increasing. The Fourth IMO Greenhouse Gas study, published in August 2020, predicts that emissions could increase by as much as 130 percent by 2050 compared with 2008 levels.

To reverse this alarming trend the ships in use, the fuels that power them and the related infrastructure all need to change as the industry transitions to low or zero-carbon maritime fuels, the companies said in their combined media statement.

Acron to Increase Transshipments Through Ultramar’s Ust-Luga Port Terminal

News, News Briefs, Russia

Acron Group, Moscow, and Russian logistics company Ultramar LLC signed a Memorandum of Cooperation during the St. Petersburg International Economic Forum (SPIEF 2021), held June 2-5, according to a statement by the Russian fertilizer group.

The companies plan to increase transshipments of Acron’s fertilizers through Ultramar’s terminal at Ust-Luga Commercial Seaport on Russia’s Baltic Sea Coast.

Using new storage capacity, Ultramar will provide up to an additional 10 million mt of transshipment capacity in 2022-2030 for fertilizers produced by Acron Group.

Acron and Ultramar in June 2019 – at SPIEF 2019 – inked a long-term transshipment agreement providing for the transshipment of some 1.2 million mt/y of fertilizers and for warehouse leases in Ust-Luga (GM June 14, 2019).

The Ust-Luga terminal received the first batches of Acron Group fertilizers in early 2021. The companies expect to transship over 1.5 million mt of fertilizers in 2021.

“Our cooperation with Ultramar helps expand our export potential, increase the Acron Group’s contribution to the Russian economy, and ensure stable supplies to our clients,” said Acron Group Chairman Alexander Popov.

Jordan’s APC, Egypt’s Evergrow Agree to Increased Potash Supplies

Egypt, Jordan, News, News Briefs, Potash

Arab Potash Co. (APC) has agreed to increase its potash exports to Egypt’s specialty fertilizer producer Evergrow to 300,000 mt in 2022, according to a Bloomberg  report, citing Jordan’s state-run Petra  news agency. APC currently exports some 180,000 mt/y of potash to the Egyptian company.

The agreement was inked on June 6 during a visit to Jordan by Evergrow Group Board members led by Chairman Mohamed El Kheshen, and follows the securing of a $400 million loan by the Egyptian company. The loan was signed with a syndicate of 12 banks, led by Mashreq Bank Dubai and the National Bank of Egypt, the Egyptian company reported on its website.

Evergrow will use some $74 million from the loan to finance the construction of the third phase of the company’s fertilizer plant in Sadat City – scheduled to be completed within nine months – where the increased potash volumes will be used. Evergrow’s  specialty products include sulfate of potash products.

The remaining $326 million of the loan will be allocated restructure previous debts Evergrow owes to the same banks.

According to a report by The Jordan Times  newspaper, also citing  Petra ,the Egyptian company hopes to enhance its partnership with APC through the establishment of joint ventures in the near future to cover the nitrogen needs of Jordan’s major fertilizer companies.

ICL Group Launches ICL Planet Start-Up Hub

Israel, News, News Briefs

ICL Group, Tel Aviv, has set up a dual-track program and service envelope for all start-ups working under its umbrella.

Through the program, the start-ups can leverage the Israeli group’s broad business and infrastructural ecosystem, including investment, co-working space, access to laboratories and analytical equipment, and R&D support, with options for field trials and new-product pilots, said ICL. 

The first phase will focus on areas related to crop nutrition, such as organic fertilizers, nutrient use efficiency, biostimulants, micronutrients, and nitrogen fixation.

The second will focus on food tech start-ups active in the areas of alternative proteins, natural ingredients, plant-based functional ingredients, and white biotechnology, that can demonstrate a measurable positive environmental impact.

Botswana Studies SOP Production

Africa, News, News Briefs, Sulfate of Potash

A Botswana government joint venture with South Africa’s Alkali Holdings is reported to be nearing completion of a feasibility study looking at establishing a facility to produce potassium sulfate (SOP) at the Sua Pan, in Botswana, according to a report by Botswana’s Sunday Standard.

The Sua (Salt) Pan is a seasonal lake that fills with water during Botswana’s summer rainy season and retains water until April or May. It is one of three large pans with the Makgadikgadi region.

The jv, Botswana Ash South Africa (Pty) Ltd., known as BOTASH SA, is a 50:50 percent jv between the Botswana government and Chlor-Alkali Holdings, that started operation in 2013.

BOTASH currently is the largest producer of natural sodium products in the region and relies on the production of soda ash and salt, according to the report. According to its website,  the jv is exclusively responsible for the sales, marketing, and distribution of natural soda ash, salt, and sodium derivatives in the Southern African market.

Canada’s Mkango to Create European Rare Earths Hub in Poland with Grupa Azoty

Canada, News, News Briefs, Poland

Polish chemicals and fertilizer group Grupa Azoty SA, Tarnów, and Canadian mineral exploration and development company Mkango Resources Ltd. have agreed to work together towards the development of a rare earth separation plant in Poland.

According to a June 7 media release by Mkango, the parties have signed an exclusive lease option agreement for a site adjacent to Grupa Azoty’s subsidiary’s Puławy’s fertilizers and chemicals production site at Puławy. Feasibility studies for the rare earth separation plant are being undertaken.

A new Polish owned subsidiary of Mkango, Mkango Polska, also has been established.

Grupa Azoty Puławy Management Board Member Andrzej Skwarek said the proposed project complements the adjacent activities of Grupa Azoty Puławy, benefiting from synergies in relation to reagents, by-products, utilities, and infrastructure.

Ammonia

Ammonia, Black Sea, Brazil, California, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northwestern Europe, Pacific N.W., Southeast Asia, Tampa, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa:

June Tampa ammonia prices continued to be called $535/mt CFR.

The industry awaits news on the status of Incitec Pivot’s (IPL) Waggaman, La., ammonia plant. The company told Green Markets that it was due up in late May from its most recent turnaround, but IPL is not expected to give an operational update until August.

Eastern Cornbelt:

Ammonia pricing was steady at $615-$625/st FOB in the Eastern Cornbelt, with the low reported at Illinois and Indiana terminals and the high at Lima, Ohio. Specific terminal pricing for the week included $615/st FOB Kingston Mines, Ill., and Huntington, Ind., and $615-$620/st FOB Illinois terminals at Trilla, Wood River, and Cowden.

Western Cornbelt:

Ammonia pricing was steady at $600-$620/st FOB terminals in Iowa and Nebraska, depending on location, with the Palmyra, Mo., market pegged at the $615/st FOB level. The last delivered offers into Missouri were reported at $585-$590/st for limited tons from Oklahoma.

California:

Anhydrous ammonia was unchanged at $626/st DEL in California, with aqua ammonia referenced at $172/st FOB.

Pacific Northwest:

Ammonia prices were quoted at $615-$650/st FOB in the Pacific Northwest, down roughly $15-$30/st from last report, with delivered tons quoted in roughly the same range. Aqua ammonia remained at $160/st FOB Kennewick, Wash., and $170/st DEL.

Western Canada:

Ammonia pricing in Western Canada was reported in a much tighter range at C$950-$960/mt DEL in early June.

Black Sea:

Ammonia prices have skyrocketed. While some in the industry talked about returning to the halcyon days of $635/mt FOB in 2014, sources said a more realistic price is much less.

Sources reported deals from Turkey to China that reflect a netback of $515-$520/mt FOB. The market is expected to continue to strengthen, but traders said prices are unlikely to top $600/mt FOB before dipping.

Middle East:

Sources said Fertiglobe moved 10,000 mt of ammonia to Ma’aden for $610/mt FOB. The price is some $70/mt higher than the last reported business.

The dramatic move up in pricing was not surprising to industry watchers. The Arab Gulf has been short of ammonia for some time, forcing buyers to look far afield to satisfy their needs. Shutdowns by Ma’aden and now SAFCO add to the tightness in the supply chain.

The ever-dwindling amount of ammonia, along with continued strong demand from Asia, is expected to add fuel to the already hot prices in the region.

Northwest Europe:

The ammonia price, oddly enough, remains steady at $520-$530/mt C&F even as North Africa, Yuzhnyy, and Asia show dramatic growth in pricing levels. The price is not expected to hold as the third quarter opens in a few weeks.

Sources said they expect to see prices move to $550/mt C&F soon. Further increases could come once the Baltic price moves off its current $430-$435/mt FOB.

India:

The $595/mt CFR paid by FACT just a week ago now seems cheap. Sources reported deals into India’s West Coast at $650/mt CFR. Other deals were also reported in that range.

The Indian market is reflective of what can only be described as a hyper-priced market in Asia. Sources are reporting material heading to India and Southeast Asian buyers from just about every major ammonia producer in the world. There are reports of ammonia coming into India from the Caribbean, as well as Mexican product to other Asian buyers.

Southeast Asia:

Asian buyers are taking tons from wherever they can. Sources reported cargoes from Mexico, Yuzhnyy, the Arab Gulf, and locally to regional buyers.

The strong demand and limited tonnage has moved the price to $670/mt CFR, with $700/mt CFR looming on the nearby horizon. Besides the strong demand, the lack of production from plants in Indonesia and Malaysia is also helping guarantee ever-higher prices.

North Africa:

Strong demand for DAP and MAP has OCP in Morocco churning out as much product as possible. That increased production requires a lot more ammonia. Sources reported that OCP is grabbing as many tons as they can from multiple sources.

Brazil:

Ammonia imports for January-May 2021 were reported at 235,500 mt by Trade Data Monitor, up 63 percent from the 145,000 mt reported for the same period last year. The main supplier was Trinidad and Tobago with 220,500 mt.

May 2021 imports were down about 32 percent, to 27,000 mt from 40,000 mt in May 2020. The May 2021 imports were the lowest so far this year. The average monthly import tonnage for this year is about 47,000 mt.