Sulphur Industry News

Hail and Ghasha contracts awarded

Tecnimont, part of MAIRE’s Integrated E&C Solutions business unit, has signed a letter of award with ADNOC for the onshore processing plant of the Hail and Ghasha Development Project. The award was signed at ADIPEC, the world’s largest energy summit. The project aims to operate with net zero CO 2 emissions, in part due to the facility’s CO 2 carbon capture and recovery units, which will allow the capture and storage of CO 2 . The project will capture 1.5 million t/a of CO 2 , taking ADNOC’s committed carbon capture capacity to almost 4 million t/a. The company recently announced its decision to double its carbon capture capacity to 10 million t/a by 2030. The Hail and Ghasha CO 2 will be captured, transported onshore and stored underground, while low-carbon hydrogen will be produced to replace fuel gas and further reduce emissions, according to ADNOC. The project will also use power from nuclear power plants and renewable sources from the grid.

The overall EPC contract value is approximately $8.7 billion, with first production expected in 2025 and project completion scheduled for 2028, by which time gas capacity will have reached 1.5 bcf/d, alongside 120,000 bbl/d of oil and condensates. The scope of work includes two gas processing units, three sulphur recovery sections, the associated utilities and offsites as well as export pipelines. Tecnimont will also use MAIRE’s Sustainable Technology Solutions division to develop innovative digital solutions aimed at reducing emissions and optimizing energy consumption, allowing a significant efficiency of the plant in terms of opex and capex. The engineering and procurement activities will be executed by several dedicated teams in Europe, India and the UAE.

Alessandro Bernini, MAIRE Group CEO, commented: “Today we have been awarded the largest contract ever for the MAIRE Group, a multi-billion-dollar project which will significantly boost the delivery of our 10-year strategic plan. We are honoured to have achieved this great result with a leading global player such as ADNOC, as it represents further evidence of the strength of our long-lasting and fruitful relationship. This award, a landmark recognition of Made in Italy Engineering, is a demonstration not only of our leadership in sulphur recovery and in gas treatment plants but, more broadly, of our undisputed execution capabilities as well as our technological expertise in designing carbon-free industrial solutions.”

ADNOC has also awarded an $8.2 billion engineering, procurement and construction contract for the offshore facilities, which includes facilities on artificial islands and subsea pipelines, to a joint venture between the domestic National Petroleum Construction Co. and Saipem SpA. Saipem says that its share of that contract is valued at $4.1 billion and includes four drilling centres and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 km of subsea pipelines. Saipem said it will use its shallow water offshore vessels and advanced welding technology for corrosion resistant materials for the project.

ADNOC operates the Ghasha concession with 55% interest on behalf of partners Eni with 25% interest, Wintershall Dea with 10%, OMV with 5% and Lukoil with 5%.

There have been concerns about rising project costs, however. A recent report by Wood Mackenzie estimates project costs at $20 billion for Hail ad Ghasha, due to the sour gas and sulphur handling costs, and suggests that ADNOC may ultimately need to spend double that to achieve its growth strategy targets. In late September 2023, ADNOC awarded a $615 million EPC contract to Petrofac for the Habshan carbon capture, utilisation and storage project.

WORLD

Oil production cuts lead to price hikes

Saudi Arabia and Russia have agreed to continue coordinated oil production cuts, described by the IEA as a “formidable challenge for oil markets” as the price of Brent crude has climbed well above $90/bbl in response to a tighter market where demand now exceeds supply. The IEA said in its September Oil Market Report that following relative calm during August, with volatility at multi-year lows, the decision by Saudi Arabia and Russia in early September to extend output cuts of a combined 1.3 million bbl/d through year-end triggered a price spike in North Sea crude to a 10-month high.

The IEA estimates that the recent extension of coordinated voluntary supply cuts by Saudi Arabia and Russia will result in “locking the world oil markets into substantial deficit.”

However, the cuts leave Saudi Arabia producing only 9 million bbl/d, down from 11 million bbl/d a year ago. At present, OPEC+ appears to be maintaining a united front and remain committed to supply restraint. However, high oil prices and OPEC+ production cuts tend to stifle demand growth and boost supply outside of the bloc in the longer term.

The IEA also notes in its report that global refinery runs are set to rise by 1.7 million bbl/d to 82.4 million bbl/d this year. Chinese refinery output surged to 15.5 million bbl/d in August, up by 2.6 million bbl/d on the year and marking a new record. By contrast, OECD Europe’s refining activity fell by 370,000 bbl/d year on year to 11.49 million bbl/d, as refinery utilisation rates slumped by 2% on the year to 84%. Germany and Italy recorded utilisation rates below 80%. OECD Americas runs rose by 320,000 bbl/d on the year to 19.5 million bbl/d in August. US refinery activity was supported by the lack of weather-related disturbances and a low number of unplanned outages. Mexican utilisation rates stood at just 50%. Global crude processing rates are still below August 2019 levels of 84.5 million bbl/d, signalling an incomplete post-pandemic recovery in refining activity. Among con-tributary factors are delays to the start-up of the 650,000 bbl/d Dangote refinery in Nigeria and Mexico’s state-owned Pemex 340,000 bbl/d Olmeca refinery. Global refinery margins fell in September from August levels, mostly as a result of a decrease in gasoline and fuel oil crack values. But strong diesel and jet fuel cracks supported global refinery margins above seasonal averages.

CHILE

Refinery reduces FCC sulphur emissions

Chilean oil refiner ENAP Refinerías has started up a newly installed wet gas scrubber at the Aconcagua Refinery at Concón. The scrubber uses Elessent BELCO ® technology and is the second wet gas scrubber installed on an ENAP fluid catalytic cracking unit, with the first one commissioned in 2019 at the Bío Bío Refinery. The installation will reduce sulphur oxides and particulate emissions from the FCC to well below Chilean regulatory requirements.

Ramiro Abel Gonzalez, Latin America Business Development Manager, Elessent Clean Technologies, said; “The startup of this project serves to improve emissions control with the highest operational reliability, and it has established ENAP as a leader in protecting the environment. By developing tailored emission control solutions, Elessent is delighted to be able to help refinery customers worldwide meet site-specific environmental, energy consumption, cost and operation targets.”

BELCO technology uses a proprietary water spray tower equipped with a filtering module and droplet separators. Larger particulate and SO2 are removed in the spray tower, and fine particulate is removed in the filtering module section, so that only cleaned flue gas leaves the tower. The process is fully automated, and the new custom-designed system has analysers that allow for constant online monitoring.

CANADA

Chemtrade announces 3Q results

Chemtrade has announced results for the three months ended September 30, 2023. They include an adjusted EBITDA of $142.1 million, up 3.7% year-over-year, with improved margins offsetting lower revenue, which was $483.5 million, down 7.0% year-over-year, due in part to lower prices for the Sulphur and Water Chemicals segment. SWC reported revenue of $290.5 million for 3Q 2023, compared to $311.5 million for the third quarter of 2022 due to lower selling prices for merchant acid and sulphur products due to lower sulphur costs; and lower sales volumes of merchant acid and ultrapure sulphuric acid.

Chemtrade continues to work on two large ultrapure sulphuric acid growth expansion projects in Cairo, Ohio and Casa Grande, Arizona. The project in Cairo continues to progress on schedule and on budget, with construction completion expected in the first quarter of 2024 and commissioning and start-up expected later in 2024 and commercial ramp-up expected in 2025. As regards Arizona, the joint venture analysed the results of the FEED study and has looked for cost savings where possible.

UNITED STATES

KP to partner Agra on sustainable aviation fuel

KP Engineering has been selected as the engineering, procurement, fabrication and construction management partner for Agra Energy’s series of sustainable aviation fuel (SAF) plants. These units will produce sustainable aviation fuel or renewable diesel from effluent waste from dairy farms.

“We are honoured to be a trusted partner for another project that converts waste to value, and to be working alongside a revolutionary developer like Agra,” said William E. Preston, CEO, KPE. “Their technology will fundamentally improve the operational sustainability of dairy farmers in America and abroad.”

Tony Long, CEO, Agra Energy, comments, “Working with KP Engineering has been instrumental in our operational knowhow, start up and commissioning. Now that the first unit is producing, we look forward to partnering with KPE to further optimize for the second, third and many units to come as we scale. This will offer benefits to farms and communities in building a better world.”

KPE’s scope of work consists of commissioning and startup assistance on Agra’s first plant, incorporating lessons learned into the design for succeeding units, incorporating SAF production capability into that design, updating the total installed cost estimate and executing the full EPFC on the second plant. When completed and operational, the second plant will produce between 40-60 bbl/d of renewable fuel. The second plant is scheduled to begin operations in the fourth quarter of 2024.

Analysis of impurities in hydrocarbon gas streams

AMETEK Process Instruments has introduced a new analyser capable of simultaneously measuring multiple sulphur compounds, hydrogen and carbon dioxide in one unit – the 9933. The wall or panel mountable analyser is designed for outdoor or indoor installations, with standard ingress protection ratings of IP66 and NEMA 4X, and proven operation in ambient temperatures ranging from -20°C to +50°C. The 9933 is certified for use in ATEX/IECEx/UKEx Zone 2 and North America Class I Division 2 hazardous areas, with a Zone 1 configuration pending.

Like its predecessor the Model 933, the 9933 uses ultraviolet spectroscopy to measure hydrogen sulphide, carbonyl sulphide and methyl mercaptan levels. Unlike the Model 933 however, the 9933 can incorporate optional gas sensors that measure CO2 and H2 concentrations, addressing new measurement requirements being implemented to decarbonise energy.

With decades of experience measuring sulphur components in sales gas, gas processing and refinery process streams, AMETEK focused on developing the 9933 with features requested from Model 933 end users and maintenance teams. Standard features include a 7˝ colour touch screen display, Modbus TCP and Modbus RTU support, at least four isolated and self-powered analogue outputs, and longer lamp life. Like the Model 933, long service life elution columns are utilized and continuously regenerated, so there is no need to frequently monitor and replace scrubber media for 0-3ppm measurements.

IRAQ

Iraq to invite bids for sour gas development project

Iraq intends to invite global firms to submit bids for the development of a southern onshore oilfield as part of a drive to tap its massive gas resources. The bids are for the development of the Nahr bin Umar field near the southern city of Basra, operated by the state-run South Gas Company. The aim is to produce around 150 million cfd of sweet gas and an equivalent amount of sour gas from Nahr bin Umar, possibly also including gas liquids and condensates, with the project to be awarded on BOOT (buildown-operate-transfer) basis.

KAZAKHASTAN

Funding for Kashagan gas plant

Kazakh state run holding Samruk-Kazyna has signed an agreement with the Bank of China to arrange a loan to fund building a gas processing plant that will handle additional associated output from the Kashagan field in Kazakhstan’s sector of the Caspian Sea. An additional 1 bcm of associated sour gas will be processed by the new onshore plant, allowing Kashagan to boost production by about 25,000 bbl/d.

ARGENTINA

Trafigura to instal diesel hydrotreater

Elessent Clean Technologies has signed license and engineering contracts with Trafigura for the construction of a 125 m3 /h (18,870 bbl/d) IsoTherming® diesel hydrotreater at the Bahía Blanca refinery in Argentina. The refinery currently operates on domestic crude sourced from the Vaca Muerta and other regions of Argentina. The project represents a major investment by Trafigura in expanding the refinery’s diesel capacity and enhancing its ability to produce and sell ultra-low sulphur diesel (ULSD) domestically. This move will also position the refinery to meet the upcoming regulation that requires a reduction in the maximum sulphur content in ULSD to 10ppm. Start-up for the unit is expected in 2025-26

IsoTherming improves the quality of diesel fuel by removing sulphur, nitrogen, and other impurities, and also has lower carbon emissions than a traditional hydroprocessing unit. Through the use of a liquid-full reaction zone and an effluent recycle loop, it requires less heating from the feed charge heater, resulting in less fuel gas burned. Additionally, the diesel hydrotreater unit will be designed to optionally co-process renewable feedstock in the form of vegetable oil, giving the refinery the latitude to replace a portion of its feed with a non-fossil fuel source while producing a high-quality diesel product.

“It has been a pleasure to work with Trafigura over the course of this project, and we’re grateful for the opportunity to build this working relationship. The unit at the Bahía Blanca refinery will reduce energy consumption and CO2 emissions by approximately 50% in comparison to traditional hydrotreating technology,” said Samantha Presley, Global Business Leader – New Capacity for Refining Technologies at Elessent.

SAUDI ARABIA

Hyundai wins gas plant expansion project

Hyundai Engineering has secured a major project in Saudi Arabia worth $2.3 billion for the expansion of a major gas plant. The signing occurred at the NEOM Exhibition Hall in Riyadh between Hyundai Engineering and Saudi state-run oil company, Aramco, for the Jafurah 2 Gas Plant Package. The project will be adjacent to the site of the Saudi Jafurah Gas Treatment Facility Project (Phase-1) that Hyundai Engineering and Hyundai E&C undertook in 2021. It encompasses facilities that process gas produced from the Jafurah gas field and additional infrastructure for sulphur recovery.

A representative from Hyundai Engineering stated, “Securing the Jafurah expansion project is a testament to our world-class technical prowess and outstanding Engineering, Procurement, and Construction (EPC) capabilities. We are committed to successfully executing this project and establishing a robust position for future orders.”

IRAN

South Pars celebrates 25th anniversary

The managing director of Iran’s South Pars Gas Company (SPGC) said that 1.96 trillion cubic meters (tcm) of natural gas have been processed by the complex’s refineries and injected into the country’s gas network since the complex was launched 25 years ago. Speaking to state media, Ahmad Bahoush said: “SPGC was established on 20 October 1998 as one of the subsidiary companies of National Iranian Gas Company (NIGC) which is responsible for the operation of onshore facilities of the South Pars gas field.”

He said the first official production and processing of natural gas from the second refinery of South Pars (phases 2 and 3) began in the Iranian calendar year 1380 (2001), adding: “At that time, 50 million cubic meters of feed was received from the platforms of the South Pars gas field and 40 million cubic meters of natural gas was processed on a daily basis.”

According to Bahoush, at the time, 80,000 barrels of gas condensate and 400 tons of sulphur were also produced daily. He added: “The feed received by the complex from the platforms of this joint field is now 650 million cubic meters per day, of which 580 million cubic meters of natural gas is produced and transferred to the national network.”

The Bahia Blanca refinery, Argentina

PHOTO: TRAFIGURA

South Pars gas field, which Iran shares with Qatar in the Persian Gulf, is estimated to contain about eight percent of the world’s gas reserves, and approximately 18 billion barrels of condensate. The field’s development is divided into 24 standard phases. In late August, President Ebrahim Raisi officially inaugurated Phase 11 of the South Pars gas field, the last phase of the giant field’s development project in the Persian Gulf. Phase 11 will initially produce 15 million cubic meters of gas per day before raising recovery to 56 million cubic meters of gas, 50,000 barrels of gas condensate, and 750 metric tonnes of sulphur per day. The gas from South Pars Phase 11 will be transferred to the onshore refinery of Phase 12, where it will be processed and injected into the national gas network.

MONGOLIA

Contract signed for new refinery

Indian engineering firm Megha Engineering and Infrastructures Limited (MEIL) has received a letter of agreement (LOA) for constructing a new oil refinery from the state-owned Mongol Refinery LLC. The project is valued at $648 million. As part of the engineering, procurement, and construction contract, MEIL will build; a diesel hydrotreater unit, hydrocracker, visbreaker unit, hydrogen generation unit, sulphur block, LPG treating unit, and hydrogen compression and distribution, as well as plant buildings, satellite rack rooms and sub-stations. In addition, MEIL will also build utility and offsite facilities and other enabling facilities. Upon completion, the refinery is expected to process 1.5 million t/a of crude oil annually, meeting Mongolia’s domestic demand for gasoline, diesel, aviation fuel, and LPG.