a stokes engineering publication stokes engineering publication the deadline for receiving entries...

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Route to: A Stokes Engineering Publication The deadline for receiving entries for the next issue is October 1. FINDS SERVES THE WORLDS FERTILIZER INDUSTRY AND INDUSTRIES USING RELATED TECHNOLOGIES. Volume XXIV, Number 3 Third Quarter 2009 (continued on page 18) (continued on page 4) (continued on page 24) Fertilizer Markets Despite rain-delayed plantings in the Eastern Corn Belt, the USDA revised its planted corn acre- age forecast upward to 87 million acres, which, if correct, would be a near record. The corn price fell $0.50 per bushel on the news to about $3.50 and some analysts expected it to fall below $3.00 unless inclement weather depletes the harvest (Figure I, page 4). Ethanol Archer Daniel Midland’s (ADM) Steve Mills, speaking at the Bank of Montreal’s Capital Markets 2009 Agricultural, Protein, & Fertilizer Conference in New York, in May, expected ethanol demand to The NIPCC’s View of CO 2 The Nongovernmental International Panel on Climate Change (NIPCC) believes that global warming is not a crisis. In the past 650,000 years, the earth has experienced seven glacial/interglacial cycles. The world’s climate is always changing. It doesn’t have a correct temperature; its temperature goes up and down. We are currently well into an interglacial period. Anthropogenic CO 2 gets the headlines, but the climate was occasionally warmer in pre-industrial times than it is today. CO 2 Is a Fertilizer CO 2 is a fertilizer, especially for young trees, and it also spurs plant growth in arid climates. The famous increase in corn yield over the last 40 years may not be entirely due to NPK fertilizer. The Canada, Trinidad, and U.S. Ammonia Plants Last year’s fertilizer price spike raised new-plant and existing-plant valuations. This year, nitro- gen prices have been much lower and asset values should have fallen accordingly. With the benefit of hindsight, some buyers probably now believe they paid too much for acquisitions in 2008. In 2009, perhaps because of the recent roller coaster in valuations, prospective buyers and sellers of fertilizer MHTL’s 1,930 mtd ammonium nitrate solution plant in August. It is part of the world’s largest single-train UAN facility (see page 24).

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Page 1: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

Route to:

A Stokes Engineering Publication The deadline for receiving entries for the next issue is October 1.

FINDS SERVES THE WORLD’S FERTILIZER INDUSTRY AND INDUSTRIES USING RELATED TECHNOLOGIES.

Volume XXIV, Number 3Third Quarter 2009

(continued on page 18)

(continued on page 4)

(continued on page 24)

Fertilizer MarketsDespite rain-delayed plantings in the Eastern Corn Belt, the USDA revised its planted corn acre-

age forecast upward to 87 million acres, which, if correct, would be a near record. The corn price fell $0.50 per bushel on the news to about $3.50 and some analysts expected it to fall below $3.00 unless inclement weather depletes the harvest (Figure I, page 4).

Ethanol Archer Daniel Midland’s (ADM) Steve Mills, speaking at the Bank of Montreal’s Capital Markets

2009 Agricultural, Protein, & Fertilizer Conference in New York, in May, expected ethanol demand to

The NIPCC’s View of CO2 The Nongovernmental International Panel on Climate Change (NIPCC) believes that global warming

is not a crisis. In the past 650,000 years, the earth has experienced seven glacial/interglacial cycles. The world’s climate is always changing. It doesn’t have a correct temperature; its temperature goes up and down. We are currently well into an interglacial period. Anthropogenic CO2 gets the headlines, but the climate was occasionally warmer in pre-industrial times than it is today.

CO2 Is a FertilizerCO2 is a fertilizer, especially for young trees, and it also spurs plant growth in arid climates. The

famous increase in corn yield over the last 40 years may not be entirely due to NPK fertilizer. The

Canada, Trinidad, and U.S. Ammonia PlantsLast year’s fertilizer price spike raised new-plant and existing-plant valuations. This year, nitro-

gen prices have been much lower and asset values should have fallen accordingly. With the benefit of hindsight, some buyers probably now believe they paid too much for acquisitions in 2008. In 2009, perhaps because of the recent roller coaster in valuations, prospective buyers and sellers of fertilizer

MHTL’s 1,930 mtd ammonium nitrate solution plant in August. It is part of the world’s largest single-train UAN facility (see page 24).

Page 2: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

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Page 3: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 3

CONTENTS

N, P, K, S, Natural Gas

Fertilizer Markets ............................................... Cover Prices: Corn, Ethanol, DAP, Ammonia, Natural Gas, Oil .................................... 4

DAP Market Summary Arthur J. Roth ..................................... 8

Sulfur Update Gerard E. d’Aquin .............................. 10

ANNA 2009 ........................................................ 12

Potential New Fertilizer Projects Venkat Pattabathula .................................... 16

Methanol/Ethanol/Hydrogen

Methanol Update John N. Ockerbloom .......................... 20

IMTOF 2009 ....................................................... 21

❖ ❖ ❖

• EDITOR’S NOTES Climate Change Debate ......................... 3 The NIPCC’s View of CO2 ....................... Cover

• NEWS BRIEFS Canada, Trinidad, and U.S. Ammonia Plants ...................... Cover

Maire Tecnimont Acquires Stamicarbon ................... 16

❖ ❖ ❖

• NEW CONSTRUCTION AND REVAMPS ............... Center• MEETING NOTICES ........................................ 26• ADVERTISERS’ INDEX ...................................... 26• TO SUBSCRIBE .............................................. 28

Climate Change DebateThe House of Representatives passed a climate change bill on June 26, but the Senate is

unlikely to pass its version of the bill this year or next.1 The Fertilizer Institute is concerned that the bill will hurt the U.S. fertilizer industry. The Indian and Chinese governments believe that an international climate change agreement would hurt their economic growth. Also, their carbon emissions per capita are much lower than U.S. emissions. Carbon caps could ham-per coal use around the world, possibly without cause. In December, diplomats will meet in Copenhagen to fashion a new agreement to fight climate change. The report, Climate Change Reconsidered, seems to be very timely.2

The 850-page report (see photo) is a compilation of thousands of scientific papers on global warming and the signatures of 31,478 scientists who are global warming skeptics. It shows that the scientific debate is tilting away from global warming alarmism. The political debate is not over, but polls show that the public’s fear of anthropogenic global warming, despite the hysterical coverage of the issue by the mainstream media, has hit a ceiling and is falling.

The Nongovernmental International Panel on Climate Change (NIPCC), which stands behind the report, was set up to examine the same climate data used by the United Nations-sponsored Intergov-ernmental Panel on Climate Change (IPCC) in 2007. The NIPCC and IPCC came to opposite conclusions. The NIPCC concluded that the evidence shows anthropogenic greenhouse gases (GHG) are not playing a substantial role in global warming. The NIPCC also concluded that the net effect of continued warming and rising carbon dioxide concentrations in the atmosphere will be beneficial to humans, plants, and wildlife. It also believes that, in many instances, the IPCC has seriously exaggerated its conclusions, distorted relevant facts, and omitted or ignored key scientific studies.

The petition urged the U.S. government to reject the 1997 Kyoto Agreement and any other similar proposals because they would harm the environment, hinder science and technology advances, and damage the health and welfare of mankind. The human release of carbon dioxide, methane, or other greenhouse gases is not causing and will not cause catastrophic heating of the Earth’s atmosphere. On the contrary, increases in atmospheric carbon dioxide are ben-eficial to plants and animals.

Craig Idso and Fred Singer, who assembled and helped edit the final report, point out that the NIPCC is an in-

ternational panel of non-government scientists and scholars who have come together to understand the causes and consequences of climate change. Because they were not predisposed to

believe climate change is caused by human gas emissions, they were able to look at evidence that the IPCC ignored. Because they do not work for any government, they are not biased toward the assumption that greater

government activity is necessary. KJS

1 http://www.keithhennessey.com2 Craig Idso and S. Fred Singer, Climate Change Reconsidered: 2009 Report of the Nongovernmental International Panel on Climate Change (NIPCC), Chicago, IL: The Heartland Institute, 2009.

Page 4: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 4

FERTILIZER MARKETS PRICES ➠ DAP ❖ Ammonia ❖ Gas FERTILIZER MARKETS …(Cont. from cover)

(continued on page 5)

3-Jan-95

7-Aug-95

6-Feb-96

10-Sep-96

15-Apr-97

14-Nov-97

23-Jun-98

2-Feb-99

4-Sep-99

8-Jan-2001

1-Dec-2003

16-Oct-2006

3-Aug-2009

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

5.48 – July 1996

Source: CBOT/FINDS

Figure I Corn Price: Nearest Futures

Dol

lars

per

Bus

hel

7.7 – July 7, 2008

Figure II Fuel Ethanol: Nearest FuturesSource: CME Group

23-Oct-91 9-Jun-95 28-Dec-98 11-Jul-2002 26-Dec-2005 13-Jul-200975.00

150.00225.00300.00375.00450.00525.00600.00675.00750.00825.00900.00975.00

1050.001125.00

Figure III DAP: Central FloridaSource: FINDS/Green Markets 1075 on October 13, 2008

Dol

lars

per

Sho

rt T

on

262 on August 3, 2009

rise to 12 billion gallons per year by 2010 and margins to improve along with the increase in volume. Demand in mid-2009 equaled a 10.5-billion-gallons annual rate. The current government cap is 15 billion gallons. ADM will finish building two big plants but has no plans for starting any new-plant projects or acquiring any existing dry-mill plants. In Au-gust, its bioproducts business reported a quarterly loss because of weak ethanol demand.

Currently, the ethanol industry is running plants for cash flow. Looking forward, ADM expects energy prices to increase more than the corn price. Figure II reflects the ethanol industry’s current malaise. However, its corn feedstock price is getting cheaper.

DAPDAP prices may have bottomed out (Figure III).

AmmoniaAmmonia prices were subdued in August, following last year’s boom (Figure IV). Figure

V (page 5) shows the differential between the Corn Belt and the Gulf Coast. The Corn Belt’s high-priced inventory-overhang is history.

Jan Apr Jul Sep Dec100

200

300

400

500

600

700

800

900

Dol

lars

per

Sho

rt T

onFigure IV Ammonia Prices (Average, New Orleans)

2007

2009

Source: Green Markets

2008

3.3 – July 27, 2009

Page 5: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

6-Apr-90 23-Dec-94 6-Oct-99 26-Jul-2004 11-May-20090.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Dol

lars

per

mm

Btu

Source: FINDS/NYMEX14.3

December 5, 2005

3.4July 13, 2009

FINDS Third Quarter 2009 5

FERTILIZER MARKETS …(Cont. from page 4)

24-Nov-2008 5-Jan-2009 16-Feb-2009 30-Mar-2009 11-May-2009 22-Jun-2009 3-Aug-20090

50

100

150

200

250

300

350

400

450

500

Dol

lars

per

Sho

rt T

on

Figure V Ammonia Price Differential Mid-Corn-Belt/NOLA

Source: Green Markets/FINDS

(continued on page 6)

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47 – August 3, 2009

Natural Gas Gas continues to be in surplus, keeping NYMEX prices in the $3.50 range (Figure VI).

Several speakers at BMO’s conference said their North American ammonia plants were paying up to $1.00 per mmBtu less than the NYMEX price. However, such low prices could tighten the gas supply/demand balance. Baker Hughes reported that only 920 drilling rigs were operating in the U.S. in July, down from 1,928 rigs a year ago.

Terra Industries’ Dan Greenwell, speaking at the BMO conference, said that at domestic gas prices of $5.00 per mmBtu, Terra’s North American plants can hold their own against new, offshore cheap-gas plants. North American shale-gas finds suggest that ammonia producers could have affordable gas for the foreseeable future. The Energy Information Administration map (page 6) shows that the U.S., east of the Rockies, has numerous shale gas fields. Canada is also discovering shale gas. The most notable find so far is the Horn River field in British Columbia.

Figure VI Gas: Nearest Futures

13.6July 7, 2008

Page 6: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 6

FERTILIZER MARKETS …(Cont. from page 5)B

illio

n C

ubic

Fee

t

Figure VII Working Gas in Underground Storage Compared with 5-Year Range

Source: EIA

8-Nov-96 26-May-99 11-Dec-2001 5-Jul-2004 25-Dec-2006 13-Jul-20090

5

10

15

20

25

Figure VIII Oil and Gas PricesSource: FINDS Oil Price

Gas Price

Dol

lars

per

mm

Btu

The new lower gas price in North America has undermined the economic justification for many alternative energy schemes. Of note, T. Boone Pickens, the billionaire oilman, is now trying to find homes for 667 wind turbines that he had purchased last year for a power-genera-tion project in the Texas panhandle. Neither wind-power nor solar power can compete with $3.50-per-mmBtu gas. Most commercial solar projects are on hold. Seeing North America’s shale gas revolution must surely be encourag-ing gas producers to search for similar shale deposits in India, China, and other energy-short regions.

In the third quarter, gas in storage greatly exceeded the five-year average (Figure VII). The recession and exceptionally cool weather in the Northeast reduced gas demand while new sup-plies of unconventional gas boosted supply.

OilFigure VIII shows that oil is far more ex-

pensive than gas. Oil is internationally traded; gas is not. LNG sales are languishing in 2009 because of the recession and the abundance of shale gas. The oil price flirted with $70 per bar-rel ($11.60 per mmBtu) in August, assisted by a weakening dollar, a recovering global economy, and possibly a developing war premium. KJS

United States Shale Gas Plays November 2008

Page 7: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

May 2008

CMYCMMYCY

CMYK

ADVGROUP_280x215 def3.ai 19-05-2008 12:48:00

Page 8: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

Jul 7, 2008 Sep 15, 2008 Nov 24, 2009 Feb 9, 2009 Apr 20, 2009 Jun 29, 2009250300350400450500550600650700750800850900950

1000105011001150120012501300

Low

High

FINDS Third Quarter 2009 8

DAP Prices Third and Fourth Quarter of 2008 and

First and Second Quarter 2009

Week Beginning

Dolla

rs p

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onne

, FOB

U.S

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(continued on page 9)

DAP Market SummaryBy Arthur J. Roth

Second Quarter The March to June phosphate market results were disappointing. The high hopes

that phosphate demand and prices would pick up when spring planting got underway faded as repeated rainy spells affected much of the central U.S. At the same time that U.S. conditions were too wet for field work, agricultural regions in other parts of the world were experiencing unusually dry weather. Unsettled economic conditions in some key fertilizer markets further dampened demand in the second quarter.

Adequate inventories of agricultural commodities and forecasts of good crops in most producing areas kept grain and soybean prices well off last year’s high levels with little hope for any significant upward movement. Also, carry-over inventories of phos-phates and other fertilizers in the U.S., China, and several Latin American countries appeared to be substantial. In fact, China’s phosphate inventory, along with reduced demand from its farmers, led the Chinese government to reduce its export tax on phosphates from 110 percent to 10 percent from June 1 to the end of August for DAP and MAP and to the end of January for TSP. Finally, the global recession continued to crimp credit availability and, consequently, the world’s ability to buy fertilizers.

All of these factors weighed on the market and prices responded accordingly. The DAP price at the port of Tampa drifted steadily downward from $355 per tonne at the end of March to about $270 per tonne at the beginning of June before recovering slightly to around $285 per tonne by the end of the quarter. In spite of production

Page 9: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 9

Arthur J. Roth

DAP MARKET SUMMARY …(Cont. from page 8)

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Art Roth, who has graduate and undergradu-ate degrees in chemistry from Loyola University in Chicago, Illinois, is president of A. J. Roth & Associ-ates, a business consulting and financial services company in Lakeland, Florida.

cutbacks by phosphate producers in the U.S., North Africa, and elsewhere, the ero-sion of phosphate prices might have been much greater had not India been a steady buyer throughout the period. Timely purchases by India, coupled with spot business in Latin America, were enough to provide some support to the market at a time when U.S. marketers were primarily focused on clearing out warehouse inventories during periods of market activity and not much interested in placing orders for new material. Without the activity in the international market, the second quarter results might have been a lot more stressful for phosphate producers.

In spite of the wet weather delays, the USDA estimated that by the time planting was over in June, U.S. farmers had managed to plant a record 77 million acres of soybeans, 59.8 million acres of wheat, and 87 million acres of corn. The planted corn acreage was the second largest since 1946.

The large acreage planted is potentially good news for the phosphate industry. Early signs indicated that phosphate and other fertilizer applications were down from

previous years. Historically, in situations where planted acreage is up and phosphate applications are down, demand usually strengthens in the following season as farmers increase phosphate applications to restore soil fertility. The fact that the DAP and MAP prices are well down from the past year should also encourage consumption not only in the U.S. but elsewhere in the world.

The outlook for the remainder of the year looks auspicious for the phosphate in-dustry. The overall economic climate seems to be improving as the stimulus programs put into effect by many governments appear to be taking effect. U.S. buyers are already moving to restock warehouse inventories in anticipation of improved demand this fall. Buying is picking up in Latin America with purchases being made from the U.S. and Morocco. Buyers in Europe and Pakistan continue to be active in the market as they line up phosphate supplies to cover their needs for the rest of the year and India is thought to require 500,000 to 600,000 tons of additional DAP, beyond what China can supply during its brief export window, to satisfy demand for the Rabi season. Finally, the cost of raw materials for phosphate producers should remain relatively low. Although

ammonia prices seem set to strengthen over the remainder of the year, sulfur is still in surplus so its costs should stay close to present levels and help maintain phosphate producer margins. ■

Page 10: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 10

Gerard d’Aquin

Call for Papers for the Next OSHOT Conference in Calgary, July 20-22, 2010

For more information, visit OilSandsTechnologies.com, e-mail Gail Killough at [email protected], or e-mail [email protected]. Papers should focus on sulfur production, storage, logistics, quality – including hydrogen sulfide issues, environmental considerations, projects, consumption, and ways to handle an expected sulfur surplus.

Jerry d’Aquin is president of Con-Sul, Inc., which provides com-mercial consulting services to the sulfur and fertilizer industries. His interest in PNS dates back to 1976. Con-Sul has undertaken assignments in this field for corporations and the Canadian government.

Sulfur UpdateBy Gerard E. d’Aquin

In July, the Oil & Gas Journal held its 2009 Oil Sands and Heavy Oil Technologies Conference and Exhibition (OSHOT) in Calgary, Alberta. The 11 presentations on sulfur (six more than last year) covered sulfur logistics, production, consumption, and its long-term impact on Alberta’s environment. The following is from the paper that I presented, “Sulfur, What Happened Last Year.”

Last year, sulfur prices soared mainly because of the sulfur industry’s inability to export sulfur in a timely fashion from North-ern Alberta. A lack of infrastructure, the time needed to install new infrastructure, and the uncertain payback of any major capital investments were the issues facing sulfur producers in Alberta’s oil sands region. Fortunately, phosphate fertilizer had its own price spike, which enabled phosphate producers to pay whatever sulfur cost while the boom lasted.

Chinese buyers triggered the sulfur price collapse by not pur-chasing their usual quantities between May and September 2008. Their assertion in September that China would not purchase sulfur until the first quarter of 2009 panicked suppliers. The result was the price collapse, followed by a steep rise in Chinese sulfur purchases in October and November 2008. China needed the sulfur to supply its phosphate production from December through spring 2009.

Vancouver prices rose from $45 per tonne in January 2007 to almost $800 per tonne in January 2008. The collapse over the next six months was about $725 per tonne (see Figures I and II). Tampa prices during the same period rose from $55 per long ton to $450 over 12 months, then to $650 during the fourth quarter 2008 before collapsing to zero in January 2009.

Figure I Eighteen Months … Vancouver and Tampa

Figure III The Collapse September - October 2008 Spot Price (approx.)

Figure II Vancouver: 2006 - 2009 Quarterly Contract and Spot Prices (approx.)

The price collapse actually took only six weeks, as illus-trated by prices posted in the Arab Gulf during the critical nine weeks of September and October (Figure III). Would sulfur prices have declined as rapidly if China’s purchasing strategy had been different? Perhaps, but the high prices were insupportable without high grain and fertilizer prices. Once the 2008 financial crisis broke, the price of sulfur would have collapsed. China’s strategy and producers’ lack of storing just started the collapse a little sooner and took the price lower. ■

Page 11: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

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Page 12: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 12

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Sulzer Turbo Services serves the turbomachinery industry, including ammonia, nitric acid, methanol, and fertilizer applications.

ANNA 2009El Dorado Chemical Company (EDC), a division of LSB Industries, is hosting this

year’s ANNA meeting in Little Rock, Arkansas. Little Rock is about 125 miles north of the El Dorado plant site where EDC manufactures low-density and high-density am-monium nitrate prills, ammonium nitrate solution, concentrated nitric acid, sulfuric acid, and nitric acid/sulfuric acid mixtures (see photo on page 13). EDC will provide ANNA attendees with a virtual tour of the El Dorado facility on Friday, October 23. The three nitric acid plants on the site produce between 360 and 390 tons per day each (100 percent basis).

EDC also produces about 245 tons per day of concentrated nitric acid in El Dorado by oxidizing nitrogen dioxide and 65 percent nitric acid under high pressure. EDC is the leading producer of merchant concentrated nitric acid (>98 percent) in the U.S. and operates the largest fleet of rail cars for handling concentrated acid. In addition to the El Dorado plant site, LSB produces 65 percent acid in Baytown, Texas, for Bayer Corporation. The company’s Cherokee, Alabama, plant produces ammonia, nitric acid, HDAN solution and prills, urea ammonium nitrate, and carbon dioxide.

LSB also owns a nitrogen facility in Pryor, Oklahoma, that it plans to restart late in 2009. The Pryor facility includes a 750-tons-per-day ammonia plant that El Dorado relocated from Canada some years ago. The Pryor site also has nitric acid, ammonium nitrate, carbon dioxide, and urea ammonium nitrate plants. ■

EDC’s ANNA 2009 Organizing Committee: Kevin Waldrum, Robbie Caviness, David McDonald, Eddie Pearson, Patsy Byrd, and Todd Cottrell.

Not pictured: Ralph Cole and Greg Withrow

Page 13: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 13

EDC’s El Dorado plant site

ANNA 2009 …(Cont. from page 12)

Page 14: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

NEW CONSTRUCTION AND REVAMPS NEW PLANT Projects that the table� REVAMP Any change to an existing plant that improves the plant’s efficiency and/or increases its capacity is a revamp. Exclusions: Instrumentation upgrades, equipment refurbishing, or correcting original equipment flaws.

We rely on the contractors and/or licensors for the accuracy and completeness of the information in the table. We restrict the new plant list to those projects that are fully financed.

AMMONIA AMMONIA (continued) CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

GAS-TO-LIQUIDS CAPACITY CONTRACTOR/ BPD OWNER LOCATION LICENSOR COMPLETION

140,000 Oryx GTL Rashaffan, Qatar KBR / JGC 2009 34,000 Chevron Escravos, Nigeria KBR / Topsøe 2009

CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

HYDROGEN (PARTIAL LIST OF LARGE PLANTS ONLY) CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

DME

535 Guizhou Tianfu Chemical Machangping, Fuguan, China - / Topsøe 2009

1,200 Xinjiang Guaughui Xim Jiang, China - / Topsøe 2009

460 Yunnan Riches Chemical Yunnan Province, China - / Topsøe 2009

CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

Revamp Guizhou Kaiyang Chemical Kaiyang County, China - / Ammonia Casale 2009 Revamp Jinjiang Chemical Company Jinjiang Province, China - / Ammonia Casale 2009 Revamp JSC Farg’Onaazot Fergana, Uzbekistan - / Ammonia Casale 2009 Revamp x 2 Kribhco Surat Gujarat KBR / KBR 2010 Revamp Orica Newcastle, Australia - /Ammonia Casale 2011

AN CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

1,100 Enaex Mejillones, Chile - / Espindesa 2008 1,900 MHTL Point Lisas, Trinidad Uhde / Uhde 2009

2,100 X 2 Algeria Oman Fertilizer Arzew, Algeria MHI Daewoo / Topsøe 2012 450 Dyno Nobel Moranbah, Australia United / JMC (Relocation) 2010 1,200 X 2 MOPCO / Agrium Damietta, Egypt Uhde / Uhde 2011 2,200 Engro Daharki, Pakistan Snamprogetti / Topsøe 2010 2,000 EBIC Sukhna Port, Egypt KBR / KBR 2009 2,050 Golestan Petrochemical Co. Golestan, Iran - / Ammonia Casale 2011 910 Guizhou Tianfu Guizhou, China - / Topsøe 2009 1,632 Hulunbeier New Gold Chem Co. Hulunbeier, Inner Mongolia, China - / Ammonia Casale 2010 1,500 Jianfeng China - / KBR 2010 2,050 Lordegan Petrochemical Co. Lordegan, Iran - / Ammonia Casale 2012 3,300 Ma’aden/Sabic Ras Az Zawr, Saudi Arabia Samsung Engineering / Uhde 2010 1,850 MHTL Point Lisas, Trinidad Ferrostaal / KBR 2009 1,500 PetroChina Karla, China - / Topsøe 2009 1,800 Pequiven José, Venezuela KBR / KBR 2011 1,800 Pequiven Moron, Venezuela Ferrostaal/KBR 2011 1,800 Pequiven Nutrias, Venezuela KBR / KBR 2012 2,200 x 2 Qafco Qatar Hyundai / Topsøe 2011 900 Qinghai Center Golmud City, China - / Ammonia Casale (Synloop) 2009 3,300 SAFCO Al Jubail, Saudi Arabia Uhde/Uhde 2010 1, 000 Shaanxi Popular Jurassic (Group) Co. Fugu, Shaanxi, China - / Ammonia Casale 2011 1,000 x 2 Shanxi Shanhua Shanxi Province, China - / Topsøe 2012 700 Shijiazhuang Jinshi Chem. Fert. Co. Shijiazhuang, Hebei Provence, China - / Ammonia Casale 2010 2,050 Shiraz Petrochemical Shiraz, Iran - / Ammonia Casale 2009 1,800 Sipchem Al Jubail, Saudi Arabia - / Topsøe 2010 2,200 x 2 Sorfert Algerie Arzew, Algeria Uhde / Uhde 2011 1,000 Tianjin Bohai Tianjin, China - / Topsøe 2009 900 Vinachem Ninh, Vietnam Huangiu / Topsøe (Synloop) 2011 1,350 Wuhuan Eng. Co. Ltd. & China Nat. Mach. Corp. Ca Mau, Vietman - / Topsøe 2012 1,000 Yanchang Petrochemical Group Xingpin, China - / Ammonia Casale 2010 1,650 Yunnan Tianan China - / KBR 2008 2,050 Zanjan Petrochemical Co. Zanjan, Iran - / Ammonia Casale 2012 Revamp CF Industries Donaldsonville, LA, U.S.A. - / Topsøe 2010 Revamp Fosfertil-Ultrafertil S.A. Araucaria, Parana, Brazil - / Ammonia Casale 2010 Revamp Guizhou Jinchi Chemical Hetaoping, Tongzi, China - / Ammonia Casale 2009

160 Chinese Petroleum Tao Yuan - / Topsøe 2010 3 x 176 Essar Oil Vadinar, India - / Topsøoe 2009 255 Hellenic Petroleum Athens, Greece - / Topsøe 2009 2 x 385 KNPC Kuwait - / Topsøe 2011 345 Kuwait National Petroleum Safat, Kuwait - / Topsøe 2010 230 Nizhnekam Nizhnekam, Russia - / Topsøe 2009 100 Petrobras Rio Grande do Sul, Brazil - / Topsøe 2010 234 RNEST Ipojuca, Brazil - / Topsøe 2010

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UREA

FINDS Third Quarter 2009 15

MTG CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

300 SJA Coal Mining Jincheng, China - / Uhde 2008

❖ ❖ ❖

CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

METHANOL CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

UAN CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

3,400 MHTL Point Lisas, Trinidad Uhde / Uhde 2009 1,364 Terra Industries Woodward, OK, U.S.A. Ventech / Weatherly 2010

NITRIC ACID CAPACITY CONTRACTOR/ MTD OWNER LOCATION LICENSOR COMPLETION

300 Dyno Nobel Cheyenne, Wyoming, U.S.A. - / Relocation 2009 750 Dyno Nobel Moranbah, Australia United / Weatherly 2010 925 Enaex Mejillones, Chile - / Espindesa 2008 320 Invistu Singapore Jacobs / Weatherly (relocation) 2009 1,500 MHTL Point Lisas, Trinidad Uhde / Uhde 2009 500 Taiwan Fertilizer Taiwan KPEC / Weatherly 2010 477 Terra Industries Woodward, OK, U.S.A. Ventech / Weatherly 2010

2,500 Brunei Methanol Co. Sungai Liang, Brunei MHI / MGC 2009 1,000 Guizhou Jinchi Chem Tongzi, China - / Topsøe 2010 750 Guizhou Tianfu Guizhou, China - / Topsøe 2009 525 Gujurat State Fertilizers Vadodara, India - / Haldor Topsøe 2009 2,000 Hebi Coal and Electricity Henan, China - / Topsøe 2011 2,000 Huating Zhongxu Coal Chem Ind. Co. Ltd. Gansu Province, China - / Methanol Casale 2009 3,000 Jiu Tai Energy Inner Mongolia Co. Ltd. Inner Mongolia, China - / Methanol Casale 2009 1,350 JSC Shchekinoazot Shchekino, Tula, Russia - / Topsøe 2009 600 Sino-Chemical Benefit Energy Co. Xi’an, China - / Topsøe 2011 1,500 Tianjin Soda Tianjin, China - / Haldor Topsøe 2009 2,000 Xianyang Coal to Methanol Shaanxi, China - / Haldor Topsøe 2009 4,080 Xinjang Guanghui Xinjang, China - / Methanol Casale 2009 1,350 Zao East Siberia Gas Processing Co. Yakutsk, Russia - / Topsøe 2011 Revamp ENIP Arzew, Oran, Algeria - / Methanol Casale 2009 Revamp IBN SINA Al Jubail, Saudi Arabia - / Methanol Casale 2012 Revamp Shaanxi Carbonification Energy Corp. Shaanxi, China - / Methanol Casale 2011 Revamp Shanghai Coking and Chemical Shanghai, China - / Methanol Casale 2009 Revamp Weihe Jieneng Weihe, China - / Methanol Casale 2010

1,500 Cherepovetski Azot Cherepovet, Russia Chemoprojekt / Stamicarbon 2011 1,925 x 2 Engro Daharki, Pakistan Snamprogetti / Snamprogetti 2010 1,500 Fatima Fertilizer Company Sadigabad, Pakistan Kawasaki Plant Systems / Stamicarbon 2009 3,250 Ghadir Bandao Assalaya, Iran Chiyoda / Stamicarbon, UFT Gran. 2009 3,250 Golestan Petrochemical Co. Golestan, Iran Hampa Eng. /Stamicarbon 2012 1,200 Grodno Azot Grodno, Belarus Chemoprojekt / Stamicarbon 2009 1,750 Guizhou Jinchi Chemical Co. Tonazi County, Guizhou Province, China - / Urea Casale 2009 2,700 Jianfeng Chemicals Co. Ltd. Fulling, Chongqing, China CECC / Stamicarbon 2010 1,050 JSC Acron Veliky Novogrod, Russia - / JSC NIIK (Relocation) 2010 1,000 JSC MCC Eurochem Novomoskovsk, Russia - / JSC NIIK 2010 3,250 Lordegan Petrochemical Co. Lordegan, Iran Hampa Eng. / Stamicarbon 2012 2,080 MHTL Point Lisas, Trinidad Ferrostaal / TEC 2009 1,925 x 2 MOPCO / Agrium Damietta, Egypt Uhde / Stamicarbon 2011 2,000 Novomoskovsk JSC Azot Tulskaya Obl, Russia Chemoproject / Stamicarbon 2009 2,200 x 2 Pequiven José, Venezuela - / Stamicarbon 2012 2,200 Pequiven Moron, Venezuela VEC / TEC / TEC 2011 2,200 Pequiven Nutrias, Venezuela - / Stamicarbon 2013 2,640 PetroChina Karla, China - / Snamprogetti 2009 4,600 Qafco Qatar Hyundai / Snamprogetti 2011 1,760 Shaanxi Shanhua Chem. Fert. Shaanxi, China Hualu Eng. / Stamicarbon 2012 3,500 x 2 Sorfert Algerie Arzew, Algeria Uhde / Stamicarbon, UFT Gran. 2011 3,500 Yara Sluiskil, Netherlands Uhde / Stamicarbon 2011 2,000 Yara Brunsbuettel GmbH & Co. Brunsbuettel, Germany - /Urea Casale 2010 3,250 Zanjan Petrochemical Co. Zanjan, Iran Hampa Eng. /Stamicarbon 2012 Revamp Achema Jonava, Lithuania - / Urea Casale 2009 Revamp Azot Severodonetsk Severodonetsk, Ukraine - / JSC NIIK (Engineering) 2010 Revamp Cang Zhou Dahua Group China - / Urea Casale 2009 Revamp Erdos Unichem Int. Erdos, Inner Mongolia Chengda / Stamicarbon 2009 Revamp Grodno Azot Grodno, Belarus Chemoproject / Stamicarbon 2009 Revamp x 2 JSC Azot Cherkassy Cherkassy, Ukraine - / Urea Casale 2009 Revamp JSC NAK Azot Novomoskovsk, Russia - / Urea Casale 2009 Revamp x 2 JSC Togliattiazot Togliatti, Russia - / Urea Casale 2010 Revamp Koch Nitrogen Co. Enid, Oklahoma, U.S.A. - / Urea Casale 2009 Revamp Nevinnomyssky Azot Russia - / Urea Casale 2010 Revamp Ruwais Fertilizer Abu Dhabi, UAE - / Urea Casale, UFT Gran. 2009 Revamp Terra Industries Woodward, Oklahoma, U.S.A. - / Urea Casale 2010 Revamp Zaklady Azotowe “Pulawy” Pulawy, Poland - / Urea Casale 2009

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• • • N E WS B R I E F • • •

FINDS Third Quarter 2009 16

Venkat Pattabathula

Venkat Pattabathula has a BS degree in chemical engineering from Osmania University, India, and an MS in chemical engineer-ing from the Indian Institute of Technology, Kharagpur. He is the ammonia technology manager at Incitec Pivot Ltd. in Brisbane, Australia, and has worked on other nitrogen plants in India, the Middle East, and North America.

Potential New Fertilizer Projects

By Venkat PattabathulaThe projects in FINDS’ new projects listing (page 14) are fully financed. Following

are some other ammonia, urea, and phosphate projects currently under consideration that have not yet reached financial closure.

• Australia – Perdaman Chemicals and Fertilisers plans to build a $2.5 billion urea manufacturing facility in Collie, Western Australia, about 200 kilometers south of Perth. The gasification project will produce two million tonnes per year of urea from sub-bituminous coal.

• Abu Dhabi – Ruwais Fertiliser Industries (FERTIL) has invited bids to build a 730,000-tonnes-per-year ammonia/1.3-million-tonnes-per-year urea complex at its existing site in Ruwais.

• Brazil – Brazil’s Petrobras plans to build a 760,000-tonnes-per-year ammonia/ one-million-tonnes-per-year urea complex in Pernambuco State.

• China – Sichuan Hogda through its subsidiary, Sichuan Mianzhu Chuanrun Chemical Company, plans to construct a fertilizer complex to produce 200,000 tonnes per year ammonia, 300,000 tonnes per year urea, and 300,000 tonnes per year compound fertilizers.

• Egypt – Egypt’s Orascom Construction Industries and Egyptian Financial and Industrial Corporation (EFIC) are planning to produce up to 300,000 tonnes per year of ammonium sulphate using ammonia from EFIC’s plant at Ain Sokhna near Suez.

• Egypt – Abu Qir Fertilizers and Chemicals, Egypt’s Nasr Mining, Helwan Fer-tilizer, and Plyserve plan to build a facility to produce 1,000 tonnes per day of TSP, 1,000 tonnes per day of DAP, 750,000 tonnes per year of sulfuric acid, and 250,000 tonnes per year of P2O5.

• Gabon – Germany’s Helm Dungemitel has signed a Memorandum of Understand-ing with the government of Gabon to do a feasibility study for an ammonia/urea and methanol facility in the West African country.

• India – Coromandel Fertilisers and the Murugappa Group are planning to build a 600,00-tonnes-per-year ammonia/ 800,000-tonnes-per-year urea complex in West Asia.

• Kazakhstan – Russia’s EuroChem is planning to build a fertilizer project in Kazakhstan’s Karatau Basin to produce 800,000 tonnes per year of urea and 500,000 tonnes per year of compound fertilizers.

• Peru – CF Industries awarded Technip a contract to complete the front-end engineering design of a 2,600-tonnes-per-day ammonia/3,850-tonnes-per-day urea synthesis project to be built near San Juan de Marcona.

• Qatar – The Indian and Qatar governments are planning a joint venture to produce 1.6 million tonnes per year of urea.

• Tunisia – The Tunisian government is planning to beneficiate four to five million tonnes per year of rock at the Sra Ourtane phosphate deposit and to produce a million tonnes per year of P2O5 as phosphoric acid, MAP, DAP, and/or TSP.

• U.S. – SynGest, a syngas technology company, has announced plans to build the world’s first biomass-to-ammonia plant in Des Moines, Iowa. The plant will use 150,000 tons per year of corncobs to manufacture 50,000 tons per year of ammonia.

Maire Tecnimont Acquires Stamicarbon

In July, Mairie Tecnimont reached an agreement with Royal DSM to acquire Stamicarbon, DSM’s urea licensing subsidiary, for €38 million on a cash and debt-free basis. The sale should close later this year. In 2008, Stamicarbon made a profit of €25 million on net sales of €57 million. Its average profit over the last four years was €10 million per year.

Stamicarbon, which was founded in 1947 and has licensed over 250 urea plants in 80 countries, employs about 50 people. DSM is transforming itself into a life sciences and materials sciences company. Maire Tecnimont is a leader in project management and contracting. Stamicarbon will continue to generate licensing revenues as a stand-alone activity. KJS

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Page 18: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 18

ppm level, CO2 absorption by increased biomass is able to absorb about 10 gigatons of carbon per year. At present, the absorption rate is about three gigatons per year.

Figure III shows the effect of CO2 enrichment on plant growth. The figure is a summary of data from many experiments that compared plant growth under stressed and unstressed conditions. The results underestimate the global response because the studies were slightly biased toward plant types that respond less to CO2 fertilization. CO2 enrichment allows plants to grow in drier regions, further increasing the response.

Trees respond to CO2 fertilization more strongly than most other plants. Amazonian rain forest vegetation is increasing by about 900 pounds of carbon per acre per year. Young tree growth increases almost linearly with CO2 concentration over the 300 to 600 ppm range. Wheat in a dry climate is 11 percent more productive in a 383 ppm CO2 environment than a 295 ppm environment.

The “Environmental Effects” paper concludes that an-thropogenic greenhouse gases are not playing a substantial role in global warming. Something else is the main cause, probably the sun. Figure IV indicates that the earth’s tem-perature correlates with solar activity. KJS

1 A. B. Robinson, N. E. Robinson, and W. Soon, “Environmental Effects of Increased Atmospheric Carbon Dioxide,” Climate Change Reconsidered: 2009 Report of the Nongovernmental International Panel on Climate Change, Chicago, IL: The Heartland Institute, 2009.

NIPCC believes the International Panel on Climate Change (IPCC) overlooked or downplayed the biological benefits of higher CO2 concentrations in the atmosphere. Numerous papers found in Climate Change Reconsidered discuss CO2’s biological benefits. The following facts and charts are from one of them, “Environmental Effects of Increased Atmo-spheric Carbon Dioxide.”1

The CO2 concentration in the open air is about 390 ppm. In an office environment, it can exceed 1,000 ppm. Extrapolating the curve in Figure I suggests a CO2 level in 50 years of 470 ppm at the rate we are going. Some climate specialists expect CO2 to level off at 600 ppm. However, at ultimate equilibrium with the ocean and other CO2 sinks, atmospheric CO2 concentrations will probably be similar to current levels. Over geological time, CO2 appears to have ranged between peaks of 8,000 ppm and troughs of 200 ppm. It has increased about 30 percent since 1880.

The total industrial production of CO2, mainly from coal, oil, and natural gas, is eight gigatons of carbon per year, but the atmosphere contains 780 gigatons and the surface ocean contains 1,000 gigatons. Humans exhale about 0.6 gigatons of carbon per year.

In all seven glacial/interglacial cycles, changes in CO2 and CH4 lagged the temperature changes and, therefore, could not have caused them. Rising sea temperatures dur-ing the interglacials caused ocean “out-gassing” (see Figure II). Also, the paper argues, if CO2 greenhouse warming had caused the interglacial temperature to climb, the tempera-ture rise per 30 percent CO2 rise would have been as high during the last hundred years as it was during the seven interglacial periods. Figure II indicates it hasn’t been.

Plant life provides a large sink for CO2 because plants can sequester more carbon at higher CO2 levels. At the 600

THE NIPCC’S VIEW …(Cont. from cover)

Figure I

Figure II

Figure III

Figure IV

Page 19: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

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FINDS Third Quarter 2009 20

further signs of strength, trading in the $0.65 to $0.70 per gallon range ($216 to $233 per tonne). The July posted non-discounted U.S. barge contract rose to $0.64 to $0.68 per gallon ($213 to $225 per tonne). One seller posted $0.72 per gallon for August.

Western EuropeEuropean demand was weak but

stable. The combined effect of redirect-ing product to China, declining Middle East available product, and the loss of significant Russian imports firmed spot prices and slightly increased the third quarter referenced contract price. Marginal Russian methanol producers have reduced operating rates and some have shut down. The resulting 70 percent decline in Russian exports to Europe equaled a loss of nearly 750,000 tonnes for the first half of the year. The referenced Western European third quarter, non-discounted contract posting was 163 euros per tonne, or approximately $229 per tonne. European spot prices were nearly even with contract pricing.

Far East and AsiaChinese chemical-grade methanol

demand improved in recent months. The PRC’s methanol/gasoline-blending program also made strong gains. Nation-wide M85 gasoline standards received government approval and will become effective later this year. However, the price collapse in the international methanol market reduced the profitabil-ity of Chinese production and lowered plant operating rates. Methanol imports surged above any previously recorded level and seemed likely to reach 4.5 to 5.0 million tonnes on an annualized ba-sis. A group of domestic PRC methanol producers petitioned the government to impose anti-dumping duties on methanol imports from Indonesia, New Zealand, Malaysia, and Saudi Arabia. John Ockerbloom

Methanol / Ethanol / HydrogenMethanol / Ethanol / Hydrogen

John Ockerbloom, who has a BS degree from the University of New Hamp-shire, is the methanol di-rector for Petrochemical Consulting International Group (PCI) of London. John’s office is in Kittery, Maine.

Source: Market, PCI/Ockerbloom & Co.

Historic Methanol PricingWestern Europe & North America

Methanol UpdateBy John N. Ockerbloom

July

WorldImproving Chinese/Asian demand, continued strong Chi-

nese imports, and supply constraints lowered inventories and tightened the global supply/demand balance. Second quarter plant maintenance in Trinidad, Russia, Iran, Malaysia, and Saudi Arabia caused prices to firm slightly in all markets.

The AmericasOverall, North American methanol demand continued

to reflect the depressed economic climate with only minor gains in the last few months. Some imports to the U.S. were being redirected straight to alternative markets with the arbitrage difference between the U.S. Gulf and China at near parity. Methanex announced that it was planning to restart a second shuttered methanol plant in the fourth quarter. It has four at the Chilean site, but natural gas constraints have allowed it to run only one for the past two-and-a-half years. Uncertainty surrounded Venezuela’s methanol industry after the government announced its intention to take a majority ownership position in all existing petrochemical operations. Two methanol plants are in operation and a third is under construction. U.S. Gulf spot prices in late July were showing

Global Methanol Consumption by Region

Source: Market, PCI/Ockerbloom & Co.

PRC domestic and import methanol prices recovered slowly, but steadily, in the third quarter. July import prices were fixed at $230 to $240 per tonne, CFR. A global marketer posted a non-discounted July price of $250 per tonne.

The Petronas Methanol’s 1.7-million-mty Labuan II plant in Malaysia and the new 1.65-million-mty NPC Zagros II plant in Assaluyeh, Iran, were both planning to start producing commercially in 2009. Globally, an additional 3.1 million tonnes of methanol capacity was still expected to start up in early 2010. ■

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FINDS Third Quarter 2009 21

IMTOF 2009In June, Johnson Matthey Catalysts (JM) held its tenth biennial International

Methanol Technology Operators Forum (IMTOF) in Amsterdam. IMTOF, which used to be limited to JM’s customers, is now open to a wider audience. China’s Peng Zhi Gui was one of JM’s most distinguished guests (see photo).

Xu Yuan Ming, Translation/Senior Engineer, Shanxi Federation of Industrial Economics, and Peng Zhi Gui, whose positions include chairman of the board, China Federation of Industrial Economics; vice-president, China Productivity Academy; president, Shanxi Federation of Industrial Economics; and former

vice-governor, Shanxi Provincial Peoples’ Government

Mark Berggren of Methanol Market Services Asia kicked off the proceedings with a market overview, “Methanol – Overbuilt but Not Over.” His key points included:

• The West is in the midst of the worst petrochemical downturn in decades

• Methanol is especially hard-hit because new capacity has boomed in the last five years.

• Operating rates will not bottom until 2010, or later, unless capacity is rational-ized

• Pricing will remain near the floor set by Chinese methanol producers

• Coal, LPG, and gasoline have become important factors in determining the fate of methanol

• Methanol supply is overbuilt in China (see Figure I, page 22)

• Methanol demand-growth is mostly in Asia and is centered on China (see Figure II, page 22)

(continued on page 22)

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FINDS Third Quarter 2009 22

(continued on page 23)

Mark’s market overview was followed by 18 technical papers. Toward the end of the conference, JM revealed a secret that it had kept in-house for five years. It launched, with great theater and fanfare, KATALCO APICO, a new generation of methanol synthesis catalysts. Pelham Hawker, the Johnson Matthey director responsible for KATALCO APICO, said it is a step change in catalysis greater than all of the cumulative improvements of the last 40 years. He believes KATALCO

Figure I Methanol Supply Capacity by Region (MeOH Supply Overbuilt in China)

Figure II World Methanol Demand 2004 – 2014 (Est.) (Demand Growth Mostly Asia, China Centered)

IMTOF 2009…(Cont. from page 21)

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FINDS Third Quarter 2009 23

APICO is the biggest change the methanol industry has experienced since ICI first introduced copper zinc catalysts and the low-pres-sure methanol process in 1962. KATALCO APICO is still a copper zinc catalyst but is manufactured in a state-of-the-art facility at JM’s plant site in Clitheroe, Lancashire, UK. KATALCO APICO will enable operators to make more methanol by increasing efficiency in existing plants and will reduce the capital and operating costs of new plants. Figure III cites the new catalyst’s features and its potential benefits in an existing plant. KJS

IMTOF 2009…(Cont. from page 22)

KATALCO APICO pellets

Figure III Example: A Modern 2,500-mtd Methanol Plant Could Expect the Following Benefits

Pelham Hawker (enlarged on screen) describing JM’s five-year push to develop KATALCO APICO.

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• • • N E WS B R I E F • • •

FINDS Third Quarter 2009 24

NEWS BRIEF …(Cont. from cover)

assets (eg., Agrium, CF Industries, Terra Industries) have been unable to agree on asset prices and, consequently, industry consolidation is on hold.

This year’s steeply falling gas prices in North America have swept desks clean of the numerous proposed coal and pet-coke gasification revamps that ammonia producers were studying just a year ago. Natural gas suddenly appears to have a future in North America, once again, as a methanol/ammonia feedstock. Even the most credible gasification retrofit seems to be on hold. Eastman Chemi-cal, assisted by Fluor, completed the front-end engineering and design of a proposed conversion of its currently idle, gas-based methanol plant in Beaumont, Texas, to coal or petcoke feedstock. However, Eastman seems to be in no hurry to proceed with implementation, possibly because methanol prices are

now exceptionally weak. Beau-mont’s relatively new purge-gas ammonia plant is also idle.

In April, Methanol Holdings (Trinidad) Limited’s (MHTL) 1,850 mtd ammonia plant (KBR) in Point Lisas, Trinidad, began ship-ping ammonia. The downstream plants, 1,520 mtd nitric acid (Uhde), 1,930 mtd ammonium nitrate solution (Uhde), 2,100 mtd urea (Toyo), 4,300-tonnes-per-day UAN-mixing (Uhde), and 1,800 mtd melamine (Eurotecnica), should be complete later this year. The photo on this page shows the nitric acid plant in August.

Canada and Trinidad are combined with the U.S. in Table 1 on page 25 because they supply over 80 percent of U.S. nitrogen imports. KJS

LEADING TECHNOLOGYFOR INNOVATIVE SOLUTIONSThe BORSIG Group delivers hi-tech solutions from one singlesource: Pressure vessels, heat exchangers, industrial boilers,power plant engineering, membrane technology, compressorsand blowers, as well as an international acknowledged industrialservices. Our products stand for high quality, competence andreliability.

Process Gas Waste Heat SystemsBORSIG Process Heat Exchanger GmbH, a member of theBORSIG Group, has been supplying high temperature and pressure process gas waste heat systems for the petroche-mical industry for more than 30 years. Every process gaswaste heat system manufactured by BORSIG is designedexactly in accordance with the customer´s individual requi-rements and is provided with special design features for thevarious operating conditions and applications.

Quench CoolersBORSIG Process Heat Exchanger GmbH is the world´sleading manufacturer of quench coolers for ethylene plants.BORSIG has developed two design types, reflecting thecustomer´s plant concept: BORSIG Linear Quencher (BLQ)and BORSIG Tunnelflow Transfer Line Exchanger (TLE).

A practical design, highly qualified personnel and modernmanufacturing and testing methods ensure the high qualitystandards to meet all requirements with regard to stability,operational reliability and service life.

BORSIG - YOUR PARTNER FOR THE FUTURE

For more information, please contact:

BORSIG Process HeatExchanger GmbH

Egellsstrasse 21D-13507 Berlin GermanyPhone: +49 (30) 4301-01Fax: +49 (30) 4301-2447 E-mail: [email protected]

BORSIGPROCESS HEAT EXCHANGER

(continued on page 25)

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FINDS Third Quarter 2009 25

PCS Nitrogen – #s 1 & 2 Point Lisas 769

PCS Nitrogen – #3 Point Lisas 193

PCS Nitrogen – #4 Point Lisas 527

Terra Industries (MissChem) – Point Lisas – Owns 50% of the FMCL plant

Tringen – #1 Point Lisas 398 Owners: State 51%, Yara 49%

Tringen – #2 Point Lisas 427 Owners: State 51%, Yara 49%

Yara – Point Lisas 214

SUBTOTAL 5,163

U.S.A. Nominal Capacity Company (Previous Owner) Tonnes N per

Ownership Notes & Current Operating Status Year x 1,000

Agrium – Borger, TX 360

CF Industries – #1 Donaldsonville, LA 400

CF Industries – #2 Donaldsonville, LA 400

CF Industries – #3 Donaldsonville, LA 308

CF Industries – #4 Donaldsonville, LA 308

Coffeyville Resources (Farmland) – Coffeyville, KS 285 Petrocoke feedstock

Dakota Gas – Beulah, ND 264 Coal-based

Eastman Chemical (Terra Industries) – Beaumont, TX 190 Offline

Green Valley – Creston, IA 26

Honeywell (Allied Signal) – Hopewell, VA 335

Incitec Pivot Ltd. (Dyno Nobel) – Cheyenne, WY 143

Incitec Pivot Ltd. (Dyno Nobel) – St. Helens, OR 67

Koch Industries (Farmland) – Beatrice, NE 209

Koch Industries (Farmland) – Dodge City, KS 209

Koch Industries (Farmland) – Enid, OK 753

Table 1 Ammonia Plant Ownership and Current Operating Status

Koch Industries (Farmland) – Fort Dodge, IA 260

LSB Industries (Cherokee Nitrogen) – Cherokee, IL 182

Mosaic (IMC-Agrico) – Donaldsonville, LA 395

Nitromite – Dumas, TX 104

PCS Nitrogen – Augusta, GA 474

PCS Nitrogen – Geismar, LA 411

PCS Nitrogen – Lima, OH 455

PCS Nitrogen – Woodstock, TN 292

Rentech – East Dubuque, IL 220

Terra Industries – Port Neal, IA 260

Terra Industries – #1 Verdigris, OK 400

Terra Industries – #2 Verdigris, OK 400

Terra Industries – Woodward, OK 365

Terra Industries (MissChem) – Donaldsonville, LA 343 (Swing Capacity)

Terra Industries (MissChem) – #1 Yazoo City, MS 377

SUBTOTAL 9,195

TOTAL (CANADA, TRINIDAD & U.S.A.) 18,268

PERMANENTLY SHUTDOWN Nominal Capacity Tonnes N per

Company Year x 1,000

Agrium – #1 Kenai, AK 475

Agrium – #2 Kenai, AK 475

Koch Industries – #1 Sterlington, LA 455

Koch Industries – #2 Sterlington, LA 455

❖ ❖ ❖

CANADA Nominal CapacityCompany (Previous Owner) Tonnes N per

Ownership Notes & Current Operating Status Year x 1,000

Agrium – Carseland, AB 450

Agrium – Ft. Saskatchewan, AB 422

Agrium – Joffre, AB 370

Agrium – #1 Redwater, AB 366

Agrium – #2 Redwater, AB 199

CF Industries – #1 Medicine Hat, AB 435

CF Industries – #2 Medicine Hat, AB 435

Simplot – Brandon, MB 342

Terra Industries – Courtright, ON 358

Yara (Saskferco) – Belle Plaine, SK 533

SUBTOTAL 3,910

TRINIDAD Nominal CapacityCompany (Previous Owner) Tonnes N per

Ownership Notes & Current Operating Status Year x 1,000

CNC I (Caribbean Nitrogen Company) – Point Lisas 527 Owners: Ferrostahl, Clico Energy, EOG Resources, Koch Industries

CPML-Point Lisas 527 Owners: Clico Energy and Ferrostaal Startup: 2009

Nitrogen 2000 (CNC II) – Point Lisas 527 Owners include: Ferrostahl, Clico Energy, and EOG Resources

FMCL– Point Lisas 527 See Terra Industries and Koch Industries

Koch Industries (Farmland) – Point Lisas – Owns 50% of the FMCL plant

Koch Industries – Point Lisas – Owns 15% of the CNC 1 plant

MHTL– Point Lisas 527

NEWS BRIEF …(Cont. from page 24)

Page 26: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

FINDS Third Quarter 2009 26

MEETING NOTICES • 2009 & 2010

Published by Stokes Engineering Company, LLC

EDITOR: Keith J. Stokes

EDITORIAL CONSULTANT: Elizabeth Witte Stokes

PRODUCTION MANAGER: Daniel R. Leroux

ART DIRECTOR: Martine L.-M. Leroux

FREQUENCY: FINDS (ISSN 1536-1705) is a quarterly publication.

RATES: Annual charges are U.S. $530 for overseas readers who want to receive FINDS by air mail and U.S. $500 for North American readers who want to receive FINDS by First Class Mail.

CIRCULATION: FINDS is sent to fertilizer and methanol producers in over 100 countries and to North American ethanol producers and oil refiners.

DIRECT ALL CORRESPONDENCE TO: Keith J. Stokes

STOKES ENGINEERING COMPANY, LLC

66 Davis Hill Road • Weston, CT 06883

Tel: (203) 454-0704 • Fax: (203) 454-0706

E-mail: [email protected]

FINDS Web site: http://www.finds.net

Opinions expressed by authors of articles in FINDS are not necessarily those of Stokes Engineering Company.

2010

October 4-7The Gasification Technologies Council (GTC) MeetingThe BroadmoorColorado Springs, COFor more information, contact: GTCPhone (703) 276-0110Fax (703) 276-0141Web site: www.gasification.org

October 12-13Fuel Ammonia NetworkThe KCI Expo CenterKansas City, KSFor more information, see:Web site: www.energy.iastate.edu.

October 19-23The Ammonium Nitrate/Nitric Acid (ANNA) MeetingThe Peabody HotelLittle Rock, ARFor more information, see:Web site: www.an-na.org

October 28-30The Fertilizer Outlook and Technology ConferenceMarriott Tampa Waterside Hotel and Marina Tampa, FLFor more information, contact: Linda McAbee 820 First Street, N.E. Washington, D.C. 20002Phone: (202) 962-0490Fax: (202) 962-0577

November 3-5IMPCA/MMSA Asian Methanol ConferenceSingaporeFor more information, contact: Jim Jordan & Associates 12941 North Freeway, Suite 226 Houston, TX 77060Phone: (281) 877-7009Fax: (281) 877-7267E-mail: [email protected]

December 3-5The Fertilizer Association of India’s Annual ConferenceHyderabad, IndiaFor more information, contact: D. Ramakrishnan FAI, New DelhiPhone: (91) 11-26567144Fax: (91) 11-26960052E-mail: [email protected]

December 8-9World Methanol ConferenceLoews Miami Beach HotelMiami Beach, FLFor more information, contact: CMAI 11757 Katy Freeway Houston, TX 77079Phone: (281) 531-4660Fax: (281) 531-9996

FebruaryThe Fertilizer Institute’s Marketing Business MeetingFor more information, contact: Linda McAbee 820 First Street, N.E. Washington, D.C. 20002Phone: (202) 962-0490Fax: (202) 962-0577

April 19-21The Syngas Association MeetingThe Marriott Sharon Hills HotelTulsa, OKFor more information, contact: Jill BabineauxPhone (225) 922-5000 or E-Mail: Betty Helm [email protected]

Borsig ................................................... 24

Casale Group ....................................... 7

Christy Catalytics ................................... 8

Espindesa ............................................. 21

Haldor Topsøe ....................................... 17

IESCO ................................................... 22

Johnson Matthey Catalysts ................... 19

ADVERTISERS’ INDEX

CONTACT US AT:

[email protected]

KBR ...................................................... 27

RS Bruce Ltd. ....................................... 5

Schoeller-Bleckmann Nitec .................. 9

Stamicarbon .......................................... 11

Stokes Engineering Company .............. 28

Süd-Chemie .......................................... 2

Sulzer Turbo Services ........................... 12

Page 27: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

Maximum ammonia production.Lowest energy consumption.

Highest stream factor.Bigger bottom line.

Got a plan? We do.

For more information, email [email protected] or visit www.kbr.com/ammoniaKO8038 © 2008, KBR Inc., All Rights Reserved

FIND$_1Q08.indd 1 2/19/2008 4:30:18 PM

Page 28: A Stokes Engineering Publication Stokes Engineering Publication The deadline for receiving entries ... age forecast upward to 87 million acres, ... believes that global warming

STOKES ENGINEERING COMPANY, LLC

provides engineering and business services to chemical

and fertilizer plant owners and lenders around the world.

➠ ➠ ➠ ADDRESS CORRECTION REQUESTED

Please photocopy and mail to:

STOKES ENGINEERING COMPANY, LLC66 Davis Hill Road

Weston, CT 06883 USA

❑ Overseas readers: I want to receive the next four issues by Air Mail at a cost of U.S. $530.

❑ North American readers: I want to receive the next four issues by First Class Mail at a cost of U.S. $500.

I am involved in the manage-ment, engineering, purchasing, or marketing functions of the fertilizer or methanol industries.

❑ YES ❑ NO

My primary responsibility is: ❑ Corporate ❑ Engineering ❑ Purchasing ❑ Sales ❑ Advertising ❑ Marketing

Primary business is: ❑ Fertilizer Producer ❑ Methanol Producer ❑ Ethanol Producer ❑ Oil Refiner ❑ Broker ❑ Contractor ❑ Equipment Manufacturer

❑ Other

please describe

PAYMENT METHOD

❑ ❑

EXPIRATION DATE: ■■/ ■■CARD NUMBER

■■■■ ■■■■ ■■■■ ■■■■

NAME ON CARD

SIGNATURE

SUBSCRIBER’S NAME

TITLE

COMPANY

ADDRESS

CITY

STATE ZIP COUNTRY

TELEPHONE FAX

E-MAIL ADDRESS

❑ Check (MUST BE IN U.S. DOLLARS)

PROFESSIONAL SERVICES

• NEW PLANTS

Assist with project planning and financing, select process licensors

and contractors, supervise engineering and construction.

• PLANT IMPROVEMENTS

Prepare plans for optimum stepwise investment to improve

reliability, save energy, increase capacity. Assist with engineering,

purchasing, and construction supervision as needed.

• PLANT & EQUIPMENT APPRAISALS

Evaluate plants and equipment for use in place and for relocation.

• MARKET SURVEYS

Survey supply/demand growth potentials for new fertilizer

products and new plant technology.

• FEASIBILITY STUDIES

Develop project economics. Evaluate new technology. Act as

arbiter for owner-developer or purchasers.

• LEGAL

Provide expert independent testimony for private litigation and

government hearings.

• MERGERS & ACQUISITIONS

Help evaluate.

STOKES ENGINEERING COMPANY, LLC

66 Davis Hill Road • Weston, CT 06883 USA

TEL: 203.454.0704 • FAX: 203.454.0706

E-mail: [email protected]

FINDS Web site: http://www.finds.net

FINDS Third Quarter 2009 28