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Tag: Sulphur

Financing in place for Hail and Ghasha

The Abu Dhabi National Oil Company (ADNOC), working in partnership with Italy’s Eni and Thailand’s PTT Exploration and Production, has completed a structured financing transaction of up to $11 billion for its huge Hail and Ghasha sour gas development. Dr. Sultan Ahmed Al Jaber, UAE’s Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, commented: “This landmark transaction builds on ADNOC’s successful track record of global energy partnerships and unlocks capital to drive progress at Hail and Ghasha, one of the world’s most ambitious offshore gas projects. The exceptional demand from over 20 leading global and regional financial institutions reinforces confidence in ADNOC’s value creation strategy, innovative approach to financing, and expertise in delivering mega projects. Hail and Ghasha is an important contributor to ADNOC’s gas strategy and is on track to generate significant value for ADNOC, our partners, and the UAE, while unlocking important new gas resources for our customers.”

Low sulphur refinery upgrade for Viva Energy

Viva Energy has commissioned a new ultra-low sulphur gasoline (ULSG) plant at its Geelong refinery to meet Australia’s updated fuel standards, which came into effect on December 15. Under the standards, all gasoline grades must contain a maximum of 10 parts per million (ppm) sulphur, a so-called Euro-V standard. The ULSG plant was officially opened by the Minister for Climate Change and Energy, Chris Bowen MP, alongside Viva Energy Chairman Robert Hill and CEO Scott Wyatt.

Price Trends

The global sulphur market’s bullish momentum from late 2025 has firmly carried over into the New Year, with prices pushing forward across most key regions despite a slow return to spot trading after the holiday break. With spot prices now past their 2022 highs and testing levels not seen since the 2008 peak, affordability has become the market’s central theme. The market remains divergent, with some buyers forced to accept the rally due to tight supply, while others, particularly in China, are showing clear signs of demand destruction.

Capacity increase at Heartland Sulphur

Heartland Sulphur says that it has debottlenecked its crushed bulk sulphur remelting operations, increasing capacity by 40%. Heartland says that the increase boosts the company’s sulphur handling efficiency and service capability for producers and buyers. It has also completed a full feasibility study and retained engineering partners to add an additional 1,000 t/d of sulphur remelt capacity, slated to be fully operational by yearend 2026. Heartland Sulphur can form 4,500 t/d for offshore markets, transport molten sulphur by tank car to destinations across North America, and accept and condition sulphur in both molten and solid states. The company’s existing remelt capacity stands at 700 t/d and is projected to reach a total of 1,700 t/d (560,000 t/a) by the end of 2026.

Sulphur ban extended

At the end of December, the Russian government extended its ban on the export of technical sulphur until at least the end of March 2026. The move prolongs the initial restrictions, which were first reported on 4 November and which were set to expire at the end of 2025. The initial ban was widely expected and followed early September drone strikes on the Astrakhan and Orenburg natural-gas plants. The official justification for the extension remains to “stabilise shipments of raw materials to the domestic market” and maintain production volumes for mineral fertilizers, according to the government’s press service Interfax.

Market Outlook

• CRU’s latest global sulphur forecast is for a January price peak before a decline, with the key downside risk being a sharper correction if the supply deficit closes faster than expected. The global sulphur market’s upward momentum has been slowing, with attention shifting to geopolitical risks in Iran. Despite limited physical disruption being reported, the upside risk to prices could be substantial. Following the US bombing of an Iranian nuclear facility back in June, supply from Iran became bottlenecked, despite good production levels, as vessel owners became unwilling to call at ports like Bandar Abbas due to the increased risk.