Sulphur Industry News

Sulphur Industry News

SAUDI ARABIA

Aramco sale nets $12 billion

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).

The sale is also small compared to the size of dividend payments that the company has made in order to keep its share price high. Saudi Arabia’s public finances remain constrained by OPEC+ production caps – Aramco produced 10.6 million bbl/d in 2023, but this is currently down to around 9 million bbl/d, with production running at only around 75% of capacity. Non-oil revenues came to 50% of GDP in 2023 but oil still represents 75% of government income, and even at $77/bbl it is not covering government spending. n

CHINA

Sustainable aviation fuel project for China

Topsoe has been selected by Guangxi Free Trade Zone Hongkun Biomass Fuel Co., Ltd. to deliver its HydroFlex ™ technology for the production of sustainable aviation fuel (SAF) and renewable diesel.

Based on Topsoe technology, 300,000 t/a of feedstock will be processed into renewable fuels.

Construction of the plant is scheduled to begin in May 2024, with SAF production expected to start in the beginning of 2026. The facility will be Topsoe’s first SAF project in China.

Elena Scaltritti, Chief Commercial Officer at Topsoe, said: “We continue to expand our SAF technology offering across the world, and we are thrilled to secure our first agreement to supply SAF production technology to a partner in China. This agreement represents a key step in introducing an alternative to conventional jet fuel in this geography and contributes to our sustained efforts of supporting decarbonisation globally. We look forward to further expand our relationship with Guangxi Hongkun Biomass to achieve their decarbonisation goals.”

According to the International Energy Agency’s Net Zero Scenario, over 10% of fuel consumption in aviation needs to be SAF by 2030 to stay on course for net zero CO 2 emissions by 2050. In 2022, the International Air Transport Association estimated global SAF production to make up only around 0.1% to 0.15% of total jet fuel demand.

UNITED ARAB EMIRATES

NextChem contract for Hail and Ghasha

Maire Group subsidiary NextChem has been appointed as technology design integrator to develop the process design package for the hydrogen and carbon dioxide recovery unit of the Hail and Ghasha gas development project. The Hail and Ghasha project, a $8.7 billion package of which was awarded to Tecnimont by ADNOC in October 2023, is one of the most important initiatives globally to decarbonise the energy processing industry. The project aims to operate with net zero CO 2 emissions, in part thanks to the recovery units to be developed by NextChem, which will allow the capture and storage of 1.5 million t/a of CO 2 .

NextChem’s scope of work encompasses the process design pacakge for the raw gas compression station, the dehydration and separation unit, the CO 2 compression station and other associated facilities based on best-in-class technologies and solutions. Leveraging its decarbonisation expertise and capabilities, NextChem will also support Tecnimont in supplying certain critical equipment and developing the detailed engineering design for the hydrogen and CO 2 recovery section. The overall value of the contract is approximately $ 60 million.

Alessandro Bernini, CEO of Maire, commented: “This project proves the strength of the Group’s integrated approach, and how we can support customers on a broad spectrum of decarbonisation solutions.”

UNITED STATES

Hydrogen from sour gas

Thiozen, a spin-off of the Massachusetts Institute of Technology (MIT), says that it has successfully produced clean hydrogen from sour gas waste streams at a pilot unit in the Permian Basin. The demonstrator unit removed hydrogen sulphide from the sour natural gas streams while simultaneously generating zero-emission hydrogen. Thoizen partnered with Texas-based oil and gas production company ACT Operating Company for the pilot to install the technology at the gas gathering site.

Marshall Watson, President of ACT Operating Company and department Chair of Petroleum Engineering at Texas Tech University, commented: “Sour gas processing is a major cost associated with energy supply, and both removing the hydrogen sulphide and producing a new energy stream in hydrogen gas is a major step-up in our industry.”

Thoizen believes the process will reduce global greenhouse gas emissions by more than 300 million metric tonnes per year. Additionally, the start-up says the technology will improve air quality and respiratory health in communities near the current hydrogen infrastructure while providing cost-sensitive firms with a path to procuring additional hydrogen. The US Permian Basin has already been identified as a potential hot spot for blue hydrogen production, given its extensive oil and gas infrastructure, large volumes of natural gas production, and significant carbon capture and storage (CCS) potential.

Piñon Midstream increases sour gas capacity

Piñon Midstream says that it has commissioned its third amine treating unit at its sour natural gas treating and carbon capture facility, the Dark Horse Treating Facility in Lea County, New Mexico. The company has also received an air permit which enables the execution of additional capital expansion projects at Dark Horse, including construction of amine trains IV, V and VI, as well as two cryogenic processing plants. The current expansion increases sour natural gas treating capacity by 50% to ~270 million scf/d. The Dark Horse Treating Facility includes a total of 1,350 gallons/minute of amine treating and two acid gas injection wells, each with depths of ~18,000 feet, permitted for 20 million scf/d of acid gas injection. Since it began operations in August 2021, Piñon says that it has reduced the environmental impact of oil and natural gas production in the Delaware Basin through the capture and permanent geologic sequestration of more than 225,000 tonnes of carbon dioxide (CO2 ) and hydrogen sulphide (H2 S).

Infrastructure and expansions that are included in the newly approved air permit include three additional 900 gallons/min amine treating units, each with a capacity up to 220 million scf/d; two cryogenic processing plants with total permitted processing capacity of 460 million scf/d; three dehydrators for amine trains IV, V, and VI; a 10,000 bbl/d condensate stabiliser; and 4,400 barrels of storage capacity.

Piñon’s founding partner and Chief Executive Officer, Steven Green, said: “With the recent receipt of the NSR permit, Piñon is well-positioned to significantly expand our sour gas treating and carbon capture operations within the Delaware Basin. “This important milestone underscores our mission to unlock substantial acreage across the Delaware Basin while improving the environmental impact of oil and gas production.”

Certification for new analysers

AMETEK Process Instruments has received third party ATEX and IECEx Zone 1 hazardous location certifications for its recently released 993X series of analysers, encompassing the 993X and 9933. Using an integrated purge and pressurisation system, the 993X analysers can be installed in locations where an explosive atmosphere is occasionally present during normal operations. The new Zone 1 certification compliments the existing ATEX, IECEx, UKEX Zone 2 and North America Class I Division 2 approvals that are also available.

Michael Gaura, senior product manager explained, “AMETEK Process Instruments recognizes plant operators are continually focused on safety and efficiency. The 993X analysers are designed to safely and continuously measure and monitor process gas streams in challenging environments. Providing analysers with Zone 1 classification, provides operators with more options, and reduces risk.”

The 993X analysers use ultraviolet spectroscopy to measure hydrogen sulphide, carbonyl sulphide and methyl mercaptan in natural gas and biomethane gas streams. They are also used to measure hydrogen sulphide, carbonyl sulphide, carbon disulphide, sulphur dioxide, and hydrogen in sulphur removal and recovery operations. The analysers have ingress protection ratings of IP66 and NEMA 4X and are proven to operate in ambient temperatures ranging from -20ºC to +60ºC.

Brimstone Group LP acquires the Brimstone Sulphur Symposium

The Brimstone Group LP, a newly established entity formed by sulphur industry professionals Angie Slavens, Elmo Nasato, and Dave Sikorski, has acquired the Brimstone Sulphur Symposium from Brimstone STS. In recent months, Mike Anderson, President of Brimstone STS, has closely collaborated with the new team to facilitate a seamless transition of the event’s stewardship. Anderson remarked, “The Brimstone Sulphur Symposium has been a cornerstone in our industry, and I am confident that Angie, Elmo, and Dave, with their combined expertise, will carry forward its legacy admirably.”

Historically, the Brimstone Symposium has garnered acclaim as the foremost gathering for professionals specializing in amine and sulphur recovery. This year’s symposium is slated for the week of September 9th at the charming Sonnenalp Resort in Vail, Colorado.

The Brimstone Group says that its establishment underscores a steadfast commitment to preserving the symposium’s 30-year heritage, while promising to uphold its status as one of the premier events in the sulphur industry. “We are honoured to shepherd the Brimstone Sulphur Symposium into its next chapter,” said Angie Slavens. “Our dedication lies in honouring the event’s rich legacy while addressing the evolving needs of our industry.” Elmo Nasato added, “This symposium has long been a crucial forum for the exchange of knowledge and innovation in sulfur recovery. We are devoted to upholding its high standards and ensuring it remains an invaluable resource for industry professionals.” Dave Sikorski commented, “The Brimstone Symposium’s collaborative spirit and technical depth distinguish it from other events. We are committed to continuing to foster an environment where the latest research and best practices are shared and openly discussed.”

IRAN

New sulphur plant

The Neyr Perse Company, a subsidiary of Iran’s oil and gas producer MAPNA Group says that it is constructing a 400 t/d sulphur plant as part of the South Pars Phase 14 development. It follows the successful start-up of a similar MAPNA-developed unit in South Pars Phase 13. The facility will process previously flared gas, reducing environmental pollution. The sulphur recovery sections of the South Pars development were originally envisioned to be designed and built by international companies, in collaboration with the respective license holders. However, the sanctions against Iran and increasing domestic capability has led to a number of Iranian companies becoming involved in their development. The recovered sulphur will be granulated for transport and export. Neyr Perse says that it is able to produce sulphur granules that meet the stringent SUDIC standard.