Issue Number (74) January - April 2016 ( ددعلا 74 ليربأ - رياني ) 2016 ·...

العدد )74( يناير - أبريل 2016 Issue Number (74) January - April 2016

Cover AFA Magazine Issue 74.indd 1 5/15/16 5:09 PM

SOLUTIONS FOR MULTI-NUTRIENT FERTILISER PRODUCTIONFrom mixing of liquid melts and solid

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Cover AFA Magazine Issue 74.indd 2 5/15/16 5:09 PM

Dr. Ali Obeid Al-Yabhouni

CEO Fertil Abudhabi - UAE

Being committed to the sound vision of the late Sheikh Zayed bin Sultan Al Nahyan, May God Bless his soul, of transferring the desert to a green oasis and achieving food security, UAE has established factories for chemical fertilizers by making use of available rich natural resources, namely oil and gas, which are considered the raw materials for fertilizers production. Taking into account the significant growth witnessed by fertilizers’ industries during the last decade, we in FERTIL worked strenuously, under the umbrella of AFA, to enhance our dis-tinguished status in order to support fertilizers industry system. We worked to achieve such a goal by doubling agricultural productivity and advancing Arab and international markets requirements so as to encounter the most serious challenges faced by the world, that is to say meeting the increasing food demands and combating poverty and hunger. The progress and development accomplished by FERTIL reflects its belief in human resources, being of significant role in achieving and maintaining such progress and development sought by the Company. This also affirms that HSE considerations come at the top of the Company priorities, being part and parcel of the applied approach concerned with managing company works for the fulfillment of the set goals. From the other side, FERTIL took into account its commitment towards protecting the environ-ment and ensuring the safety of its staff in order to establish a model of safe and secured future for the coming generations. The Company accordingly confirmed that the petrochemical in-dustries can interact flexibly with an environment, which receives high level support. The Company thus deeply believes- since its foundation - that its approach towards estab-lishing a safe, trustworthy and profitable industry depends on always being an institution committed to implementing its operations in a responsible way and paying due concern to its staff, society and environment safety. This method aims to construct an ideal industrial model, which runs in line with ADNOC HSE strategy concerned with enhancing social responsibility and achieving sustainable development for the benefit of the coming generations. HSE systems receive remarkable international attention, particularly in the petrochemical industries sector based on the nature of operations implemented during the manufacturing phase. Therefore, FERTIL continuously upgrades its vocational health and safety systems and applies several initiatives for improving safety measures and performance. In this framework, FERTIL adopts a serious safety policy that led to 10,000,000 injury free working hours, hence the Company received an honorable record in HSE achievements. FERTIL further obtained a Certificate of Responsible Care from Gulf Petrochemicals and Chem-icals Association as well as the Award of Distinction from ADNOC, which is part of ADNOC HSE awards categories. Quality and improved productivity besides raising efficiency mainly depend on vocational safety, proactive risk management and preparedness to apply approved procedures via train-ing provision, auditing application and fully complying with HSE standards, which are posi-tively reflected in staff performance.

Editorial

Editor-in- Chief

Mr. Mohamed Abdallah ZainSecretary General

Corporate Social ResponsibilitySeminar

AFA Workshop Operation andMaintenance Optimization

Evergrow launches FirstAgricultural Caravan in Egypt

Under the Patronage

of The Arab Fertilizer

Association (AFA):

Issue Report

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• AFA is a non-profitable, Arab International Organization established in 1975. AFA is operating under the umbrella of Council of Arab Economic Unity.

• AFA comprises Arab institutions and companies working in the fields of fertilizers man-ufacturing, trading in addition to other related fields.

• AFA aims, generally, at coordinating and developing technical relations between mem-ber companies, together with all issues related to fertilizer industry. AFA represents a framework through which Arab companies work and get to know the latest technologi-cal developments in fertilizer industry. It further provides Arab companies’ representa-tives with the opportunity to strengthen relationships with international institutions, or-ganizations and companies working in the field of fertilizer industry, trade and usage.

Deputy Editor-in- Chief

Mrs. Mushira MoharamManager, Communication & PA

Members of Editorial Board

Eng. Mohamed M.AliStudies Manager

Mr.Yasser KhairyHead, Economic Section

Colour separation & printed by

All correspondences tobe addressed to:

Arab Fertilizer AssociationP.O. Box 8109 Nasr City 113719 Ramo bdg. Omar ben Khattab

St. Nasr Road - Nasr City Cairo, Egypt

Tel: +20 2 23054464Fax:+20 2 23054466 +20 2 23054465

E-mail: [email protected]

Tel : 02 3720 6007 - 0122 744 6308

22nd AFA International Fertilizer Fourm and Exhibition

Issue Number (74) January- April 2016

Fertilizers & Agriculture

AFA Board of DirectorsChairman

H.E. Dr. Abdulrahman JawaheryBahrain

Board Members

H.E. Mr. Jamal Eddine Bensari

AFA Vice Chairman - Morocco

H.E. Mr. Hedhili Kefi

Tunisia

H.E. Mr. Khalifa Al-Sowaidi

Qatar

H.E. Mr. Saad Abu Al Maaty

Egypt

H.E. Mr. Abdel Karim ElBarasi

Libya

H.E. Mr. Khaled Al-Mana

Saudi Arabia

H.E. Mr. Adil Kareem Kak Ahmed

Iraq

H.E. Dr. Shafik Ashkar

Jordan

H.E. Mr. Miloud Louhichi

Algeria

H.E. Dr. Ali Obaid Al Yabhouni

UAE

H.E. Mr. Mejbel Al Shammeri

Kuwait

H.E. Mr. Ahmed Al MarhoubiOman

MemberSyria

• The articles and all material contained herein do not necessarily represent the view of AFA unless the opposite clearly mentioned.

• The contributions of researchers, students, and experts in the field of fertilizer industry and trade are highly welcomed for free publication provided that they have not been published before. The General Secretariat is not obliged to return the articles which are not published.

• The Journal is providing the chance for publishing adverts for the companies involved in manufacturing and trade of fertilizer and other agricultural inputs. The arrangements for that should be discussed with the journal’s management.

The Colors in Phosphorus Deficient Plants

2015 Crop nutrient Deficiency Photo contest Winners

Studies & Research

38

42

Extending low temperature shiftcatalyst lives

Future Impact of Low Energy Prices on the Fertiliser Industry

Impact of Feedstock and MarketForces on Nitrogen Fertilizer Industry 54

51

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Issue ReportIssue Report

Issue 7404

er industry

During the opening ceremony, AFA 2015 HSE Award, provided for member companies in rec-ognition for the efforts exerted in HSE field, was granted to Pet-rochemicals Industry Company (PIC), Kuwait.

The Forum was also accompa-nied with an industrial exhibi-tion. Thirty three Arab and for-eign companies concerned with fertilizer industry, trade and shipping, participated in the ex-hibition from different countries and presented the stat-of-the-art products regarding fertilizer in-dustry.

in fertilizer production. Thus, it became a fixed international date on the agenda of fertilizer industry stakeholders. The Con-ference further tackled the fol-lowing themes:• International fertilizers future

overview: supply, demand and fertilizers status in major markets

• International developments in nitrogenous, phosphate and potash fertilizers’ markets

• International food security and role of fertilizers in agri-culture future

• Water rationalization by using modern irrigation methods

• Renewable energy and meth-od of energy management

• Natural gas impact on fertiliz-

22nd AFA International Fertilizer Fourm and Exhibition

2 – 4 February 2016From 2nd to 4th February 2016 Cairo hosted the proceedings of the 22nd AFA International Fertilizer Forum and Exhibition spon-sored and supported by AFA Egyptian member companies under the title “Fertilizers and Water for Sustainable Agriculture”.

The International Fertilizer Fo-rum is considered the most em-inent economic event related to fertilizer industry in the Arab region and Middle East. It is at-tended by more than five hun-dred people namely: CEOs of Arab and international fertilizer companies, chairmen of related international organizations and associations, number of senior experts, executives and gener-al managers representing more than 150 companies and bodies from different countries.

The Conference has been re-ceiving, since being launched in 1995, all support from the government of Egypt and the Egyptian companies specialized

Cairo Hosts

Issue 74 05

His Excellency Mr. Jamal Ben-sari, AFA Vice Chairman and the Director of Procurement and Freight Department in OCP, Morocco inaugurated the Con-ference with a speech in which he welcomed the attendants and thanked the sponsoring companies.. He added saying: “Undoubted-ly, we all know the importance of fertilizers in promoting agri-cultural productivity. Besides, we can affirm the increase in world consumption of major mineral fertilizers, which are expected to exceed 200 mil-lion tons in 2018, i.e. more than 2008 by 25%.The consumption rate of the three main elements, namely nitrogen, phosphate and potas-

sium, is actually and contin-uously increasing despite

the diversity of outcomes from one area to an-

other, particularly in some African

States, located in the south-

ern desert area. It is worth

noting that these rates have recorded its

least levels during the last decades.

With this in mind, agreeing on the fact that the agricultural sector is occupying a significant status in the economic situation of any State and is a momentum

Mr. Jamal Bensari,

The audience during the Forum inauguration

for social development necessi-tate paying due concern to fac-ing related future challenges.

AFA thus strive in such a context to enhance and develop fertiliz-er industry in conformity with AFA mission, which calls for achieving the best investment of available natural resources by using and coping with the de-veloped and clean technologies as well as protecting the human being, preserving the environ-ment and applying safety mea-sures. Mr. Bensari highlighted that Fer-tilizer industry is still enjoying promising vistas, as it will play a pivotal role in shaping the future in the shed of numerous chal-lenges, such as growing popu-lation, reduction of arable lands and limited water and energy resources available for agricul-tural production. Notably, agriculture is the num-ber one consumer of fresh water internationally. Therefore, our main future challenge is how to manage our available water resources via programs con-cerned with protecting environ-ment, preserving resources and using minimal amounts of such resources to achieve optimal re-sults. He added saying: It is hence insufficient to only provide fer-tilizers with the best prices and make fertilizers available in any


Mr.Saad AbulMaatyconditions, as we should also adapt our offers to more meet farmers and smallholders needs and should give more attention to the provision of main land nutrients accompanied with processes for the improvement of soil conditions. This noble objective will require concerted efforts and involving all stakeholders by the conclu-sion of strategic partnerships and the exchanging of exper-tise between our partners in all fields. These fields include the encouragement of carrying out agricultural researches and in-novative processes besides the launching of creative and bold initiatives to enable farmers of increasing yields and returns by virtue of international standards. Within the framework of AFA activities, our gathering today is taking a comprehensive form exceeding the manufacturing and selling issues to include also raising the agricultural awareness by providing farm-ers with guidance, supporting rational fertilization in addition to encouraging and financing promising innovations in this regard. Our annual gathering will pin-point all of the abovementioned topics. As the working papers themes, which will be presented during the three day Forum ses-sions, will focus on internation-al fertilizers policies, fertilizer

industry status, related raw materials, main consum-ing markets and future directions. All these themes will be tackled in detail and directly during the referred to sessions.

At the end of his speech, he extended his thanks and appreciation to the Government of Egypt and its affiliated bodies for sup-porting and assisting AFA events and proceedings. He further ex-pressed his gratitude to the rep-utable companies sponsoring such an international Forum.All thanks also to AFA Board and Secretariat members for their strenuous efforts exerted to enhance Arab fertilizer indus-try. He accordingly added say-ing: with such a distinguished attendance, the Forum would be an effective tool for the ad-vancement and progress of Arab fertilizer industry, in order to continuously be capable of catering for the increasing de-mand on fertilizers locally and internationally and enhancing sustainable development in the Arab region.

His Excellency Chemist Saad AbulMaaty, Representative of Egyptian industry in AFA Board

and Abu Qir Board

Chairman and Managing Direc-

tor, also delivered t h e following speech in the opening ceremony:“With pleasure, on behalf of Egyptian Fertilizer Companies’ Chairmen and the Government of Egypt, I would like to wel-come you all on the cherished land of Egypt in the opening ceremony of AFA International Conference. We are honored to have, in AFA International Fer-tilizer Conference held annual-ly since 1995 in Egypt, which is rich with a long history in nitrogenous fertilizer industry, a galaxy of distinguished sci-entists, experts, professors, re-searchers, producers and mar-keting specialists from thirty three Arab and foreign coun-tries. This shows a sincere will and affirmed pursuit to partici-

Issue 7406

pate in such a significant inter-national and specialized event. Our gathering today in such an annual Conference reflects our collective desire to develop this strategic industry, being an entry to the agricultural sector and in-dispensable to achieve sustain-able agricultural development, bridge the food gap, reduce the number of hungry people and head to fulfill targeted self-suf-ficiency. Egypt is considered one of the countries with the highest rates of fertilizer usage per feddan, as the agricultural lands are used several times annually. The ag-ricultural sector is currently witnessing the implementation of various giant national proj-ects, such as the one and a half million feddans reclamation project launched by His Excel-lency the President as the first phase of the agricultural devel-opment program, which targets the reclamation of four million feddans. Thus, the Egyptian fer-tilizer industry is fully aware of such a vital sector significance to cater for the State needs of all types of fertilizers during the coming decades and benefiting from the distinguished status obtained by such an industry in-ternationally. When talking about fertilizer in-dustry in Arab Republic of Egypt, which is the leading country re-garding such an industry in the Middle East since 1936, I would like to mention that fertilizer

industry policy in Egypt main-ly depends on covering local needs of all nitrogenous and compound fertilizers. By this it aims to achieve stability in the agricultural sector needs and food crops production as well as to maximize the added val-ue and economic return of raw materials depending on avail-able needs, accumulated exper-tise, trained labor and adequate ports for exports located on the Red Sea and Mediterranean Sea. Thus, Egypt is considered a focal point for being located on the East and West of Suez Canal from one side and con-tinuously existing in the interna-tional markets as per the clear exporting plans contributing in the international fertilizer trade movement from another side. With reference to phosphate fertilizers, it gives me great plea-sure to announce the establish-ment of the hugest complex for phosphate and compound fertil-izers production in Ain Sokna, Egypt. This project will be imple-mented by three major interna-tional companies specialized in such a field with Italian, Spanish and Chinese technologies so as to fulfill local market needs and export the surplus. This endeav-or will cater for farmers’ needs of fertilizers with suitable pric-es, increase Egyptian exports, achieve the desired increase in agricultural production, ac-complish economic and social returns by providing youth job

opportunities and make use of phosphate raw materials avail-able in Egypt.The complex comprises of nine huge factories with production capacity of nearly one million tons annually of phosphate, compound and DAP fertilizers and phosphoric acid.Furthermore, a new company is underway to establish a sim-ilar project depending on phos-phate raw materials available in New Valley governorate in Abu Tartour. It is expected for such a company to finalize incor-poration procedures and come into existence in 2016 with production capacity amounting to one million ton annually of phosphate fertilizers. The proj-ect includes a phosphoric acid production unit, nitrate acid production unit, DAP produc-tion factory as well as mixed and compound fertilizers pro-duction factory. The investments of such a project are estimated by one billion dollars.In relation to nitrogenous fer-tilizers, we would like to an-nounce that the two factories of MOPCO 1 and 2 came into exis-tence by the end of 2015, hence the total production capacity of MOPCO reaches around two million tons annually of gran-ular urea fertilizers. Therefore, Egypt production of nitrogenous fertilizers reaches 22 – 24 mil-lion tons annually (equivalent to 15.55% nitrogen).Egypt has 9 companies for ni-trogenous fertilizers production, including 17 factories with pro-duction capacity of 6.5 million tons annually of urea fertilizers (46.5%) and 1.8 million tons of ammonia nitrates (33.5%) in ad-dition to ammonia sulphate. Chemist Saad AbulMaaty further announced embarking on the execution of Kima Aswan Com-pany project with investments reaching to 6 billion pounds, which will be finalized in the second half of 2018 and with production capacity amounting to 500 thousand tons of urea

Issue 74 07

Mr. Mohamed Zain


annually (46.5%) and 220 thou-sand tons annually of ammonia nitrates (33.5%). He also men-tioned that Abu Qir Company for fertilizers is about to imple-ment an ammonia nitrates proj-ect depending on the available ammonia surplus, with invest-ments estimated by 1.7 billion pounds and an execution term of three years.His Excellency added saying: we hope for such a Conference in the shed of the distinctive at-tendance including producers, researchers and university pro-fessors, who are representing the holistic structure of fertilizer industry, trade and usage with all related derivatives, to be a tool for fertilizer industry prog-ress and advancement on the Arab and international levels. We also wish to have fruitful discussions based on enhancing fertilizer industry in the Arab region and promoting world market needs for such products, which represent the backbone for maximizing agricultural pro-duction.

This was followed with the speech of His Excellency Mr. Mohamed Abdullah Zain in which he referred to the to-tal fertilizer and raw materials production in the Arab region which exceeds 110 million tons annually. It was highlighted that about 90% of some member countries production is export

oriented, the returns of which are used to sup-port the economic and social development of such coun-tries. Mr. Zain a d d e d that there is an ongo-ing and expect-ed increase in production, which is attributed to the new underway investment projects in the Arab region. He further mentioned that the fertilizer sector was capable of occupying a special status in the international markets as a result of raw materials availability, i.e. natural gas, phosphate rocks, potash and sulphur.

For instance, the Arab region contributes by 24% of phos-phate rocks production, 63% of related international trade, around 70% of phosphoric acid international trade, 40% of urea, nearly 15% of DAP and 27% of related international trade volume.

With regard to agricultural sec-tor, it is noteworthy that it has a significant role in the devel-opment process, though the total area of utilized agricultur-al lands amounts to 75 million hectares, i.e. 5.3% of the total Arab region area.

23% of total Arab labor work

in such an area. Therefore, this situa-

tion requires increasing the agricultural lands area in order to achieve the required benefit.Mr. Zain supported his views by stating verses from the holy Quran to the meaning of “But waste not by excess: for Allah loveth not the wasters”, verse 141, Al An’nam. He said that Allah instructed us not to waste; the matter that should be ap-plied in all life fields including fertilizers:

(Waste not) fertilizers and op-timize its usage by applying the 4Rs method: Right Source, Right Rate, Right Time and Right Place.To elaborate, Mr. Zain said that in order to obtain fertiliz-ers from the Right Source, we

Issue 7408

should specify the nutritional el-ements needed to achieve agri-cultural productivity objectives (is it phosphate? potassium? nitrogen? other elements? or a mixture of such elements? As for the application of the Right Rate, it means determining the amount of nutritional elements required for a certain plant and ensuring lack of depletion. Also, adding the elements in the Right Time is one of the important fac-tors which depends on crop ab-sorption dynamics and patterns. Finally, it should be confirmed to use the elements in the Right Place in order to ensure roots absorption of such elements. It was hence been highlighted that taking not the previously mentioned elements in consid-eration will lead to economic, social and environmental defi-ciencies.

(Waste not) water and rational-ize usage by considering Right Source, Rate, Time and Place of irrigation via applying mod-ern irrigation methods. If not, agriculture will be exposed to remarkable damages, includ-ing rotting of roots, spoilage of soil, environmental pollution, change in maturity times, spread of germs and other harmful or-ganisms.(Waste not) pesticides as such leads to polluting the environ-ment for being considered poi-sonous substances. (Waste not) seeds as Allah or-

dered us “But squander not (your wealth) in the manner of a spendthrift”, verse 26, Al Israa. (Squander) here means grow-ing seeds without pay attention to the Right Source, Right Rate, Right Time or Right Place.

Bearing in mind the afore-mentioned, a new challenge emerged before AFA, which is the need to raise farmers’ awareness and enrich their cul-ture with regard to the optimal ways of using fertilizers, water and pesticides.

AFA depends on its main prin-ciple of playing a leading role in supporting agricultural pro-duction as well as pinpointing the role of its member compa-nies in strengthening commu-nity development activities. It further strives to extend bridges of communication with farmers through initiatives similar to the agricultural caravans roaming the Arab countries, as success-fully and ideally carried out by OCP and commended by AFA. Bearing in mind the previously stated, AFA has accordingly pre-pared an ambitious plan for its member companies in order to benefit from the Moroccan “Ag-ricultural Caravans” experience and to mainstream such an ex-perience in the Arab region. This plan aimed to hold com-munications between fertilizers’ factories/ experts and farmers directly in agricultural lands

and to closely identify obstacles encountering farmers when par-ticularly using fertilizers. More-over, the plan targeted fertilizer manufacturers’ adoption of a fertilizer awareness raising pro-cess, application of fertilizers by using modern technological methods, rationalization of wa-ter consumption and develop-ment of agricultural extension in general.

This initiative will be firstly ef-fectuated in Egypt in cooper-ation with AFA member Com-pany “Evergrow”, as the first agricultural caravan will be launched in April.These caravans includes con-vening workshops for farmers to educate them on taking care of plants from the very early phases of growing, preparing the land, spreading seeds and implementing other related ac-tions by using modern methods of soil analysis, land ploughing, seed application and sound and modern irrigation methods, namely sprinkling, dropping or others.From another side, the agricul-tural caravans reflect compa-nies’ community development responsibility, touching on farmers’ daily lives. To enumer-ate, the caravans design medi-cal and educational programs and activities enhancing and strengthening relations between farmers and fertilizers’ manu-facturers. At the end of his speech, Engi-neer Mohamed Zaien extended appreciation and gratitude for Arab Republic of Egypt and all affiliated institutions for spon-soring and supporting AFA proceedings and events. These efforts facilitated and boosted practical outcomes based on sincere relations and common Arab work. He further thanked the sponsoring companies (namely AFA members) for sup-porting such an event.

Issue 74 09

Paper in Brief

Global fertilizer markets: IFA outlook 2015-2016Charlotte HebebrandDirector General, International Fertilizer Industry Association (IFA)

The global economic context and agricultural market condi-tions were not supportive for fer-tilizer demand in 2015. Global economic growth was weak-ened by decelerating growth in China, soft commodity prices and currency depreciation in many countries. Global fertil-izer demand in 2015/16 would retreat by 0.1%, to 183.1 Mt nutrients, but may rebound in 2016/17, by up to 1.9%, amid persisting low crop prices due to ample inventory availabili-ties. Higher demand is forecast in Latin America, South Asia and Africa.The fertilizer industry continues to face volatile demand con-ditions, constraining feedstock supply issues and emerging

oversupply conditions. Capacity is now rapidly increasing on ac-count of important investments taken during the post-2008 era. Global nutrient sales for all uses is projected to grow modestly in 2016, by 1-1.5%, but large capacity increments will result in increasing supply/demand imbalances into 2016/17 for all nutrient segments. Global trade in 2016 is seen expanding in Latin America and South Asia.

Role of Fertilizer and Water forSustainable Agriculture Dr. Terry RobertsPresident, International PlantNutrition Institute (IPNI), USA

Sustainable agriculture is the production of food in ways that protect the long-term productiv-ity of the land, while profitably sustaining farmers and all of us.

Agriculture is the largest user of fresh water globally, accounting for about 70% of global water withdrawals. Water manage-ment is essential to producing the world’s food and water scar-city is becoming an increasing concern in many areas of the world. Like water, fertilizer is also central to producing the world’s food supply, accounting for at least half of global food production. Water and nutri-ent use are closely linked. Poor soil fertility limits the ability of plants to use water efficient-ly and plants with good nutri-tion can better withstand water stress. This presentation will re-view the linkage between water and fertilizer use and demon-strate how proper nutrient man-agement can improve water use efficiency thereby making agri-culture more sustainable.

Nitrogen MarketsDr. Dimitrios DimitriouSenior Consultant, NexantLondon, UKGlobal events, such as the re-cent economic downturn, the North American Shale gas de-velopments and resulting sig-nificant investment in regional fertilizer production, export ori-entated capacity developments in the Middle East, as well as the emergence of economic power-houses in Asia, particularly Chi-

Session 1

Issue 7410

na, shaped developments in the nitrogen fertilizer industry to its current state. The last year has been particularly challenging for the industry characterized by tough macroeconomic con-ditions, oversupplied markets, despite some regional supply disruptions, and a sustained low oil environment, all combined resulting on a drop of average nitrogen fertilizer prices and subsequently lower margins for producers, despite an across the board reduction in cost base. In this presentation, Nexant will review nitrogen markets in light of recent developments and as-sess the key market trends and challenges that will likely affect the industry in the future.

Changing Trade Flows in Phos-phate Fertilizers with a Focus on NPKsDr Mounir HalimHead of Business Development, Argus FMB, UK

The paper addresses the major changes in the phosphate trade flow covering the key move-ments in major hubs and their impact on the Phosphate mar-ket. The NPK market is specif-ically highlighted covering its global trade and recent devel-opments

Outlook and Prospects for En-ergy, Oil & Gas for Fertilizers Markets.Dr. Evgenia ApostolopoulouSenior Consultant,IHS Chemical, UK

Natural gas (NG) accounted for 69 percent of the global am-monia capacity in 2014 and as the main feedstock is a key determining factor of ammonia production costs. The historical trend was that NG prices mir-rored crude oil price develop-ments until 2008 when prices decoupled in North America. European (particularly in the Eastern part of the region) NG prices are still linked to crude oil. IHS expects Brent to av-erage $53/bbl in 2015 rising to an annual average of $54/bbl in 2016. As the market rebalances in H2 2016, prices will strengthen with our 2017 Brent forecast just above $65/bbl though we continue to an-ticipate some months will break

$70/bbl. In fact, markets could easily over-react to the tighter 2016 disposition and send pric-es above expectations despite still very high stocks. This pre-sentation will look at how this price scenario for Brent crude oil will affect NG prices in Eu-rope and ultimately ammonia and urea prices to 2020.

North & Latin America Fertiliz-er OutlookMrs. Laura CrossLead Nitrogen Analyst,Integer Research, UK

This paper provided an over-view of the key themes in North and Latin America, with a par-ticular focus on the nitrogen market. Nitrogen producers in AFA member countries have played a crucial role in supply-ing fertilizer to the North and Latin American markets, and this paper will assess the chang-ing nature of these markets in light of new capacity invest-

Session 2

Issue 74 11

Beneficiation Plant, Phosphoric Acid Plant (with Iron Removal and Con-centration Units), Sulfuric Acid Plant (with Cogeneration Turbines Unit) and Granulation Plant (for DAP, MAP, TSP Fertilizers produc-tion), The Project

aims to satisfy the local market needs and also export to the major markets like: India, Bra-zil, Europian Union and East of Africa Region.The Project will be a Vertically Integrated Project (Phosphate Rock from Abu Tartur reserve owned by Misr Phosphate), The Infrastruc-ture and Utilities are available (owned by Misr Phosphate).The Technical Studies for this Proj-ect were done by Jacobs Engi-neering, also a Pre-Feasbility Study was done by Worley Par-sons beside a Market Study that was dony by Argus Media. The

El Wady Project for Phosphateand Compound FertilizersProf. Hassan El ShallConsultant,Misr Phosphate,EgyptEng. Stephen W.HilakosProcess Engineering,Jacobs Engineering, USAMisr Phosphate Company–with Abu Qir Fertilizers and other partners-are working on the es-tablishment of Phosphate and Compound Fertilizers Complex in Abu Tartur Plateau in order to get the most of an import-ant Egyptian mineral resources, The Complex will be Consist of:

ments and changing supply-de-mand balances. The outlook for business prospects in these markets will also be addressed in the context of nitrogen pro-duction economics and chang-ing consumption trends in the next ten years

ThyssenKrupp Outlook for the PhosphateFertilizer IndustryEng. Khalil Hashim Process Engineer, Thyssenkrupp Industrial Solutions, Germany

With it’s Plant Technology busi-ness – it was formerly named Uhde, Polysius and Fördertech-nik – thyssenkrupp is one of the world’s leading designers and suppliers of engineering, equip-ment and complete plants for the minerals, mining, chemi-cal, petrochemical, coke, and the automotive industries and also for marine vessels. For the Phosphate Fertilizer Industry, thyssenkrupp offers own and licensed technologies, and EPC competences for open pit and underground Mining, for Min-eral Processing and for Fertil-izer plants including Scrapers, Grinding and Screening, Crush-ing, Beneficiation as well as Sulfuric Acid, Phosphoric Acid, DAP/MAP/TSP, Ammonia, Am-monium Nitrate, and Explosives plants. Our customers benefit from cost-effective high-tech solutions in construction of new production units, improvement

of existing plants and the entire range of services for the full life cycle of their plants and equip-ment.The presentation will demon-strate how thyssenkrupp is ca-pable to serve the Arab Phos-phate industry with complete solutions for the whole process chain from the mine via bene-

ficiation, production of phos-phoric acid and phosphate fer-tilizers up to storage and port facilities. With thyssenkrupp’s engineering office in Cairo, such solutions will be custom-ized and adopted to clients’ needs. The presentation will be directed to the interests of proj-ect developers and investors.

Paper in Brief

Session 2

Issue 7412

Project progress in steady stepsCurrent Status of Agriculture in the Near East & North Africa Region, Potential and Options AvailableDr. Muhammad Dost Regional Plant Production Officer, FAORegional Office for the Near East

The productivity of most crops in many countries of the Near East is generally low. Due to limited land holdings and scar-city of good quality irrigation water, farmers in the region are traditionally engaged in subsis-tence and integrated farming systems. With the exception of Gulf countries, cereals mainly wheat predominate in the crop-ping systems followed by bar-ley, rice, cotton, vegetables and fruit trees. Forages are also im-portant in all countries and are mainly intercropped with date palm. With the exception of Syr-ia and Iran all other countries in RNE region are net import-ers of wheat and forages. Most agricultural countries are ex-porting part of their vegetables and fruits productions. Some countries are also pursuing the policy of modernization of ag-riculture through bringing more land under irrigation and great-er transition to privatization in the sector. The total cultivated area in the Near East and North Africa region is about 46 mil-

lion hectares, 80 percent of which is rain-fed agriculture and the remaining- 20 percent under irrigation. Due to the limited use of modern techniques as well as the low and erratic rain-fall, yields are not only extremely low but exhibit wide annual fluctuations. The aver-age cereal yields obtained are generally less than one ton per hectare with a cropping inten-sity of about 57 percent that is much lower in rain-fed agricul-ture as compared to irrigated conditions. However, there are large variations/differences in this respect between countries, each of which merits a separate study. The challenge for the future will be how to develop inte-grated farming systems in dif-ferent environments of the re-gion that are compatible with the farmer’s need for food and the farmer’s ability to generate an income for the purchase of other commodities. The off sea-son organically produced hor-ticultural crops (fruit and vege-tables) can make a contribution in these fields- improved variet-ies of fruits and vegetable crops planted under better farm man-agement practices with high production of superior quality produce compatible to domes-tic and foreign markets can play a part in the goal of improving total farm income.Water Resources in the Arab World Region:Current Situation, Perspectives and Impact of Climate ChangeProf. Fayez AbdullaaCivil Engineering Dept.,College of Engineering, Jordan University of Science and Tech-nology, JUST, Jordan

Prof. Munir RusanDepartment of Natural Resources., College of Agriculture,Jordan University of Science and Technology, (JUST), Jordan Most of the Arab countries are located in arid and semi-arid zones known for their minimal annual rainfall, very high rates of evaporation and consequent-ly extremely insufficient renew-able water resources. Water availability in the Arab region is a critical issue as the region has 5 percent of the world’s popu-lation having access to merely 1 percent of the world’s total water resources. Sustainable management of water resourc-es is a must as water scarcity is becoming more and more a development constraint imped-ing the social economic devel-opment of many countries in the region. Arab countries face challenges on both fronts, with regard to managing water re-sources in a sustainable manner and ensuring affordable and re-liable water service delivery to residential and agriculture as well as other sectors. The per capita availability of renewable water resources is less than 500 m3 per year. In the Arab world, irrigated agriculture is the dom-inant user of water. Scarcity of water in the Arab countries is not a new phenomenon—al-though population growth, climate change, poor manage-ment and economic develop-ment exacerbate the scarcity. Therefore, it is useful to exam-ine how the problem has been dealt with during millennia of experience in the Arab world.

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clariantwww.clariant.com/catalysts

Company profile:Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzer-land. On December 31, 2014 the company em-ployed a total workforce of 17 003. In the financial year 2014, Clariant recorded sales of CHF 6.116 billion for its continuing businesses. The compa-ny reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plas-tics & Coatings. Clariant’s corporate strategy is based on five pillars: increase profitability, reposi-tion portfolio, add value with sustainability, foster innovation and R&D, and intensify growth.

Clariant’s Catalysts business unit is a leading glob-al developer and producer of catalysts for indus-trial processes. It has been part of the Catalysis & Energy business area of the Clariant Group since the acquisition of Süd-Chemie in 2011. Clariant

Catalysts is headquartered in Munich, Germany, and has a total of 18 production sites, 14 sales offices, and 12 R&D and technical centers around the world. Approximately 1790 employees serve customers across all regional markets. Aimed at delivering sustainable value to customers, Clari-ant’s catalysts and adsorbents are designed to in-crease production throughput, lower energy con-sumption, and reduce hazardous emissions from industrial processes. The broad portfolio also in-cludes products that enable the use of alternative feedstock for chemical and fuel production.

GemacoGemaco is a Belgian company specialized in stocking and delivering piping material for the fertilizer industry worldwide. Urea Grades· UG/UNS S31603· 310MoLN/1.4466/25.22.2/UNS S31050Nirtric Grades

Exhibitor Profile

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· 310L NAG/UNS S3100/1.4335/Uranus 65· UNS S30600/1.4361/Uranus S1ProductsPlates/Bars/Tubes/Pipes/BW Fittings/Forged Fit-tings and tailor made pieces.

EcoPhos EcoPhos is a Belgian based technology provider founded in 1996, producer and market leader of animal feed phosphates in Europe through its sub-sidiary Aliphos.Its patented process allows for valorizing low and high grade natural and urban phosphate sources. Its ecological and economic benefits solves many phosphates producers problems: decline in high grade rock reserves, environmental stress, phos-phogypsum, raising production/energy costs.EcoPhos, with head office and R&D centre in Louvain-La-Neuve, Belgium, employs 250 em-ployees. It has an engineering office (Temco en-gineering) in Lummen, Belgium, a full scale (4-8 kt/a) demonstration unit (Technophos) in Devnya, Bulgaria, and feed phosphates production sites (Aliphos) in Devnya, Bulgaria and Rotterdam, The Netherlands with a total capacity of 300 000 TPA.EcoPhos aims at becoming the largest phosphate producer for Animal Feed in Europe in the next 5 years, and by 2020, five plants shall be producing about 1 Million TPA DCP Animal Feed throughout the world. To reach this objective, several projects are ongoing to extend the production capacity:• In Dunkerque (France), EcoPhos will build a

new plant based on its technology. This new production of 220 000 TPA DCP feed grade is planned to start in January 2017 and will in-clude the possibility to use the fly ashes coming from the incineration of sewage sludge. It will be the first industrial plant in europe processing these ashes.

• In Dahej (India), EcoPhos and GNFC have set-up a joint-venture for the construction of a 200 000 TPA Animal Feed DCP that will be distrib-uted through Aliphos network, with expected start-up in mid-2018.

During the last 15 years, EcoPhos has developed and patented several processes for the phos-phate industry, that can be used for different applications :

• Valorization of hydrochloric acid from Chlor-Al-kali plants, Sulfate of Potash furnace, TDI plants

• Valorization of low grade rock phosphate to produce fertilizer, animal feed and all grades of phosphoric acid

• P-recovery from ashes out of incinerated sew-age sludge.

EcoPhos process and technology presents the fol-lowing advantages :

• 40% lower investment cost compared to con-ventional process– High quality products such as Purified Phos-

phoric Acid directly from rock– No rock beneficiation– Short residence time – High process yield– Highly concentrated phosphoric acid out of

filter – Simple material of construction

• Up to 50% lower variable cost – Low-grade or rejected phosphate rock allow-

ing expansion of mines resources– Low energy consumption

• Ecofriendly process: – Low waste ! NO Phosphogypsum!– Low energy consumption !– Pure and valuable co-products: non radioac-

tive gypsum or CaCl2– Process is not dusty

• Safe process: – No solvent– Atmospheric pressure– Reasonable temperature

• Highly flexible plants: – Single line from 25 000 to 100 000 TPA P2O5– process adapted to client’s raw materials and

products

Abu Qir Fertilizers Company (AFC)

Tel: +2035603030 (chairman Office)+ 2035603042 (marketing Dept.)Fax: +2035603032 (chairman) +2035603047 (marketing Dept.)E mail: [email protected] [email protected] www.abuqir.com

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Paper in Brief

AFC Abu Qir fertilizers co. was established in 1976 in which the public sector represents 88% of the company’s capital.Abu Qir Fertilizers and Chemical Industries is a pioneering company in the field of production and marketing of nitrogenous, specialized and liquid fertilizers in Egypt and Africa, and is one of the major Arab and international companies working in this field. The company produces and markets all types of solid, compound and liquid fertilizers in Egypt and abroad in which it represents more than 60% of the total market share of domestic fertilizers co. The company keeps track of the most up-to-date technological methods, through the adoption and application of quality management system ISO 9001 and the Environmental Management System ISO 14001. The company has also adopted and applied Occupational Health & Safety Standards OHSAS 18001 and has been the first to obtain this certificate as well as lab certificate of eligibil-ity IEC 17025.

The company is a main shareholder in:Alexandria Fertilizer Co. (Alexfert) and Helwan Fertilizers co.

Misr Fertilizer Production Company “MOPCO”

Tel: Head Office : +2 02 26713543 Fax: Head Office : +2 02 26713539Plant: +2 057 2291315 Plant: +2 057 2292062 www.mopco-eg.com

MOPCO has been established on July 26, 1998 under the Investment Guarantee and Incentive law No.8 of 1997MOPCO’s activity focuses on the production of fertilizers such as Urea and ammonia with the ca-pacity of 2 million tons of Urea per year from the three plants MOPCO 1, 2 and3. MOPCO is located at Damietta free zone on an

area of 400 thousand m2 and adjacent entirely to the port of Damietta on the Mediterranean Sea, giving flexibility in exporting of Ammonia and Urea Granules, which leads to a reduction in the cost of transportation.MOPCO is committed to protect the environ-ment by maintaining the highest standards of en-vironment protection through its operations, the selected process facilities were designed to meet the national and international standards and reg-ulations legislation today, Emissions are kept to a minimum and subject to an environmental Im-pact study.Also, the company treats the sewage and Industri-al wastewater within the company and it is further establishing an environmental monitoring station.The company has registered in the new European system, which is known as “ RECHE “ for record-ing and evaluating the company’s exported prod-ucts to the European Union, This increases the chance of the continuous exportation of MOP-CO’s products to the European markets.MOPCO has also obtained various international certificated such as ISO-14001, OHSAS-18001 , ISO-9001 .www.mopco-eg.com

Helwan Fertilizers Co. (HFC)

Office: 1081 Kornish El-Nile ,Garden City, Cai-ro- EgyptTelefax: +2(02) 27957642 – 27957684 – 27956721www.hfc-egypt.com website:Email: [email protected]

Company Profile Helwan Fertilizers Co. (HFC) is an Egyptian share-holding companyEstablished according to the private free zone and subject to the rule Of investment incentive and guarantees, law No. 8 of the year 1997 And law No. 114 of the year 2008 Company Location

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The Company is situated over an area of 150.000 sq . m. at the industrial Area in El – Tabbeen, Hel-wan. Far from Cairo by abut 40 kilometers. Company Activities The Company produces granular urea fertilizer 46.5% Nitrogen and ammonia which is an inter-mediate product. Company Capital-Authorized capital US$700 million.-Paid-up capital US$ 150 million.Project investment cost US$ 316.75 million.-Establishment of company: With the well experienced German Company

“Uhde” as the general contractor who supplied all equipment, erected it and commissioned the plant

-During: 33 months from the effected date of con-tract

-Production started on the 9th of March 2007 -On the 15th of May 2007, the provisional accep-

tance of the plant.Production Capacity

- Granulated Urea 650.000 m. tons per year- Ammonia 400.000 m. tons per year

Specifications-Urea Fertilizer 46.5%NitrogenBiuret (maximum) limit 1%--Moisture (maximum) 0.5% Particles size 2-4.5 mm (90% minimum) -Crushing strength (4 kg minimum) -

Technology Natural Gas is the primary raw material for pro-duction with a daily consumption rate of 1.2 million cubic meters The plant consist of the following departments:

Ammonia Production Technology and operation license of Uhde Urea Fertilizer Technology and operational license of urea syn-thesis andUrea granulation licence of Stamicarbon Co.

Quality Management Environment-A Our main objective is to safeguard the environ-ment inside and out side the factory The analysis has shown that the emissions were less than the permitted limitsaccording to environment law No 4 / 1994 and law No 9 / 2009

HFC is certified for the following :- - ISO 9001/2008 for “ Quality “ - ISO 14001/2004 for Environment - OHSAS 18001/2007 for occupational Health

and Safety.

Evergrow for Specialty Fertilizers (Egypt)

B93, Street 15, Smart Village, Km28, Cairo – Alex Desert Road, Cairo - EgyptTel: +20 2 35371091 Fax : +20 2 35371090Email: [email protected]

Company profile:The pioneers of specialty fertilizer industry in Egypt and Arab region .Abu Rawash factories established in the year 2006 on 40,000 m2.Sadaat factories established in 2010 on 180,000 m2.Evergrow applies the latest production technolo-gies and the highest international quality stan-dards.Evergrow invests more than 2 billion EGP to pro-duce more than 475,000 tons/year of specialized fertilizer.Evergrow is the most modern analysis labora-tories in Sadat and Abu Rawash factories which certified with ISO/IEC 17025/2005.Evergrow applies the highest local and interna-tional quality standards and complying with Eu-ropean union standards (REACH) Evergrow acquires more then 60% of the local demand and exports to more than 30 countries by a logistics system with the highest level of ef-ficiency.In progress vision which will be reached by the end of 2017 Investments of 4 EGP pounds.

Issue 74 17

Exhibitor Profile

Misr Phosphate Co.9w\7 - Lasilky Area - Autostrade New Maadi - Cairo, EgyptTel: 202 25171058 –202 25167532 Fax: 202 25171018Email: [email protected]: phosphatemisr.comChairman: Mr. Khaled El-Ghzaly Harb,

Misr Phosphate Company:• Established in 2009, Misr Phosphate is one of

two major companies producing phosphate rock in Egypt with a production capacity of 5 million tons per year from one of the largest re-serves in the world “Abu-Tartour mine”

• On the other hand the company operates and owns other mines in “El-Sebaayah” located in the Eastern area of the Nile, where it increased-it’s production capacity of Phosphate rock.

• The tremendous phosphate ore of Abu-Tartour plateau are currently being exploited by Misr Phosphate.

• The phosphate seam spreads all over the pla-teau covering an area of about 1200 Km2, only one tenth of that area had been geologically explored by means of 375 surface drill holes, indicating the presence of about 1 Billion tons of phosphate reserve having an average P2O5 content ranging from 24% up to 31% with an average seam thickness of 3.5 meters.

• A small area of about 32 km2 out of the already explored area of the plateau has been selected to start developing the mine at the present stage.

• Misr Phosphate Company started a new joint venture with Abu-Qir Fertilizers company to es-tablish a new Phosphate Fertilizers Complex “El Wady Company”.

• The new Fertilizer complex will produce a wide range of Phosphate fertilizers mainly Phosphor-ic acid, Triple SuperPhosphate TSP, Diammoni-um Phosphate DAP and Monoammonium.

• All studies have been completed to complete the pre-feasibility study for establishing El-Wady fertilizers Company.

ElNasr Co. For Intermediate Chemi-cals (NCIC)

Cairo/Alex. Desert Road Km 28, Industrial Area Abou-Rawash, GizaTel: +202 35391640 (5 lines) Fax: +202 [email protected] www.nasrchemicals.comChairman Managing Director:Eng. Mokhtar Abd El-LatifCompany profile:Pioneer in manufacturing of chemicals and fer-tilizers• Aluminum Sulphate• Chlorine & Alkali products• Conc. Sulfuric Acid & hydrochloric Acid and

Phosphoric acid• Fertilizers (SSP/TSP-NPK & DAP – SOP).• Household insecticides Aerosols• Industrial & medical Gases.

thyssenkrupp Industrial Solutions (Egypt) S.A.E

6A Mostafa Refaat Street, Sheraton Heliopolis Area, Cairo, EgyptPhone: +2 02 22662885Fax: +2 02 22662881Website: www.thyssenkrupp-industrial-solu-tions-egypt.comwww.thyssenkrupp-industrial-solutions.com

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Contacts:Thore Lohmann, CEOAyman El-Moghly, Head of Sales & BD

Company profile:thyssenkrupp Industrial Solutions (TKIS) is an inte-gration of ThyssenKrupp Uhde and ThyssenKrupp Resource Technologies (the amalgamation Thys-senKrupp Fördertechnik, ThyssenKrupp Polysius). TKIS comprising Process Technologies, Resource Technologies offer a large portfolio within the chemical, petrochemical, refining industries, as well as mining, cement, mineral processing and bulk materials handling industries, thus offering customers cost efficient high-tech solutions as well as the range of products and services of an EPC CONTRACTOR. The history of TKIS in Egypt dated back to 1958 when TKIS had implemented KIMA fertilizers plant in Aswan. In 2004, TKIS had established in Cairo a local organization; ThyssenKrupp In-dustrial Solutions (Egypt) formerly named Uhde Engineering Egypt (UEE), to support its activities to cover engineering, procurement, construction and project management services with support of local qualified engineers. In the last twenty years, TKIS supported the Egyp-tian industry, whether governmental or private sector, with more than 15 plants in different in-dustrial areas; in fertilizers, petrochemicals and organic chemicals. Furthermore, TKIS had built more than 80% of ammonia plants in Egypt

CONTROL UNION EGYPT LLCHead Office: 31 Mostafa Kamel St. 7th Floor – Smouha – Alexandria, EgyptTel/Fax:+(20) 3 420 59 99 Tel: +(20) 3 957 92 72Cairo Office: (6B) Maadi Star Towers – 28th Floor – cornice El-Nile – Maadi – Cairo, EgyptTel/Fax: +(20) 2 2527 67 57 Tel: +(20) 2 2527 67 58Email : [email protected] : www.controlunion.comControl Union Egypt Representatives: Chairman: Eng. Ibrahim Mahdy

Mobile: +20 106 883 1512 / +20 122 262 7191Head of mineral Dept.: Mr. Mohamed KaremMobile: +20 102 331 0309 / +20 114 447 9022 Company profile:Control Union Egypt is a leading first class su-perintending (Inspection, Testing, Fumigation, Verification & Consultancy, Certification, Col-lateral, management Services) company since 1920, which provides its service globally through a network of worldwide offices for serving our client interests on an expert qualified way un-der the international quality basis whenever they need wherever they want , Also we are certified ISO 9001:2008 and a member of (IFIA) , (AFA) , (FOSFA) and (GAFTA) and we have adopted their code of ethics and compliance code throughout our global network , because of that our concept is always “ We Dear to Care” .

GEO CHEMGEO CHEM NORTH AFRICAGEO CHEM North Africa Office:Adress : 43 Victor Emmanuel st.,Smouha – Alex-andria,EgyptTel : +2 03 42 62 226 Fax : +2 03 42 75 600E-mail : [email protected] Director : Ayman El TatawyMobile : 002 0100 000 2618Company profile:Established in year 1964. The core activity of Geo-Chem is Inspection and Testing of Vegetable oil, Agri Products, Fertilizers , Minerals, Metals , Petroleum products, Chem-icals, LPG , LNG, Water, Waste water, Lube oil, Edible oil Environmental testing, Microbiological testing etc. We are into Environmental Monitor-ing, Calibration and training. Our world class analytical services provides the clients, the facility of fully equipped laboratory, with the state of art equipment as well as exper-tise of Chemists, Technicians who are experi-enced and fine-tuned to all aspects of laboratories and inspection. We have an excellent infrastructure of Interna-tional Standards, modern communications, ex-

Issue 74 19

Exhibitor Profile

perienced personal and a very vast data based information to cater the needs of our clients worldwide. Our regular clientele consists of Pro-ducers, Refiners, Traders, Consumers, Carriers and Exporters. Committed to stringent quality measures and standard, Geo Chem’s processes and services are maintained to the internationally accepted ISO 9001:2008 and ISO 17025: 2005 standards. We have 17 branches, 19 sub – branches and 19 laboratories throughout the counties and have more than 3500 experienced and qualified per-sonnel trained on state of the art equipment to extend our services to all clients.

Tragency Liaison Office / Middle East Star.

(Tragency Liaison Office) 5 Ismail El Mazny Str, behind Military College, Heliopolis, Cairo, Egypt. P.O.Box 5591, Heliopolis west 11771Tel : +202 262 33 110 – 112 Fax : +202 262 33 272Website: www.tragency.com Email : [email protected] Executive PartnersHesham Diab / Hani DiabContact Person:Soha Rashed - Member of Executive Board & Business Development Manager Email : [email protected] : 0020100 143 9015

Company profile:Middle East Star MES was established in 1981 as privately owned commercial agents and technical consultants company. Over the past period we managed to realize spe-cific growth targets, partnering with international suppliers to offer our regional customers innova-tive integrated solutions and services.

Delivery program ranges for the fertilizers indus-try:1. Water Treatment: Water and waste water treat-

ment units, Desalination packages, RO units, Ultra Filtration.

2. Reciprocating & Screw (process) compressors.3. Casting Tubes, Ammonia Reformers, Headers,

manifolds, 4. Heat Transfer Equipment: Plate & Shell & Tube

Heat Exchangers, Pressure vessels, Columns & Reactors, Condensers, Evaporators, Absorbers, Indirect fired heaters, Boilers, Chillers & Refrig-eration packages

5. Valves & actuators.6. Process Filters: Coalescers, Liquid/Liquid, Sol-

id/Liquid, Solid &Liquid Gas separation & Fil-tration.

7. Air intake filters8. Flare systems / Fired Heaters9. SCR / De-Nox Systems10. Air Preheaters

Services : • Fertilizers plants Construction Advisor, Training

– Design, Process, Operations, Maintenance, etc• Efficiency & Capacity Increase Studies, Revamp

and Modernization Turn Around Services, Turn Around Scheduling Planning, Relocation of Re-formers

NATCOMMachinery Health Monitoring & Control Solutions Nile Advanced Technology & Commerce - NAT-COM 99, Mostafa El-Nahas Street, 8th District, Nasr City, Cairo | Egypt T +2 02 2 27 18 132 +2 02 2 27 29 658 +2 02 2 27 29 659 F +2 02 2 27 18 173 M +2 0122 744 5127 Ramez A. Arsanios Business Development [email protected] www.NatcomEgypt.Com

Issue 7420

Neelam Aqua & Speciality Chem (India)H- 337 (D), Street No.17, V.K.I.Area,Jaipur-302013, IndiaTel: +91-141 2460539, 2460611 Fax: +91-141-2460081India Mobile +91 98290-69545Email:[email protected] www.neelamaqua.comCompany profile:The Company – Neelam Aqua & Speciality Chem manufactures products & provides services for the Fertilizer Industries worldwide. Neelam Aqua manufactures anti-caking for Urea, LAN, Ammo-nium Nitrate, NPK, DAP & water soluble Fertiliz-ers.Neelam Aqua manufactures effective Antifoam for phosphoric acid & phosphatic fertilizers. It has unique environment friendly colouring agents for the Fertilizers. The company manufactures dust suppressors for ssp, tsp ,dap & NPK.The Company has 5 factories located in different parts of the world for providing quick delivery of material in various continents.NEELAM AQUA & SPECIALITY CHEM IS AN ISO: 9001 Company.The Company has a very well equipped R&D lab and pilot plant for various studies in the Fertilizer manufacturing.

NAQ Global Companies

Regd. Office: Pearl Rajkamal, C-41, Jyoti Marg, Bapu Nagar, Jaipur-302 015 (Rajasthan), India Phones: 4059450 STD Code: 0141 - Fax: 4015450President & CEO: Avdhesh MathurE-mail: [email protected]: Prakash Mathur, +91- 9983040008 - [email protected]. Mgr.(Marketing): Suman Bhattacharjee, +91- 9830019888 [email protected]( Marketing): Varun Mathur, +91- 9929112546 [email protected] profile:Established In Year 2006 in Porto Alegre in Brazil, and expended to India & UAE in Year 2009. Fur-ther in 2010. New manufacturing unit established in Uberaba in Brazil.Main ActivitiesManufacturing and Supplying latest generation Specialty products & Providing World Class Ex-pert Technical Services for Fertilizer Quality Im-provementNotable AchievementsCompany Manufactures:1. Anti-caking Agents for Urea, NPK, DAP, MAP,

AN, AS & other Phosphatic & Mixed Fertilizers2 Granulating Aids

For NPK, DAP, MAP, CAN, AN ANP, AS and other phosphatic Complex fertilizer.3. Dust Suppressor for fertilizer dust control, Sulphur & Rock Phosphate Handling.4. Micro Nutrient Binders5. Filtration Aid6. Defoamers for Phosphoric Acid Plants and for Phosphatic Fertilizer plants.7. Froth Flotation Agents for purifica-tion of rock phosphate and other min-erals.Turnover: Group Turnover - USD 100 million

Issue 74 21

Exhibitor Profile

Bedeschiwww.Bedeschi.comBedeschi is one of the oldest companies in Eu-rope for heavy clay, bulk handling and crushing equipment manufacturing. Bedeschi has more than 100 years of experience in designing and implementation of machinery for various indus-try like brick and roof tiles, marine installation, mining and generally it specializes in all kinds of cargo handling equipment and fertilizer handling equipment (we invite you to visit our website www.Bedeschi.com).

OCP Group

’OCP Group is a key player in the global phos-phate market. It is the world’s largest exporter of phosphate in all its forms: phosphate rock, phos-phoric acid, and phosphate fertilizers.Founded in 1920, OCP boasts more than 90 years of experience and is present across the entire val-ue chain from the extraction to the sales of phos-phate and its derivative products. With the world largest reserves of phosphate, cutting-edge chem-ical and production facilities, and world-class R&D programs, OCP responds creatively and cost-effectively to the growing global demand of its products.

Headquartered in Casablanca, OCP works in close partnership with over 160 clients world-wide. It provides over 23,000 direct jobs and 40,000 indirect jobs across Morocco.’’

EST Group B.V.Hoorn 312-A2404 HL Alphen aan den RijnThe Netherlands T: +31.172.418841E: [email protected] AUREA SarlReprésentant exclusif de EST Group en Afrique du Nord5, Avenue Youssef Ibnou Tachefine, 90 000 Tanger, MarocT: +212.6.22104412E: [email protected] Company profileASME PCC-2 Article 3.12 Compliant Heat Ex-changer Tube Plugging, Isolation & Hydrostatic Test Plugs.EST Group provides a complete range of repair products and services, covering the life cycle of shell & tube heat exchangers and condensers; additionally EST Group provides products and services to facilitate pressure testing pipe, piping systems, pressure vessels and their components. www.cw-estgroup.com

Schmidt + Clemens Group (S+C)Schmidt-Clemens Spain, S.A.U.Ctra. Estella-Vitoria km.12 31280 Murieta Navarra Spain P.O. Box 67 E-31200 Estella, Navarra Spain Phone: +34 948 534 600 Direct: +34 948 534 632 Fax: +34 948 534684 [email protected]

Issue 7422

http://www.schmidt-clemens.comUniversal International Trading99 El Sabak St., Merryland – Heliopolis – Cairo –EgyptTel: +202 26350038 / 26329092 Fax: +202 26345849E-mail: [email protected] profile:Schmidt + Clemens Group (S+C) is the worldwide leader producer of high alloy castings for the pet-rochemical, refining, fertilizer and direct reduc-tion of iron ore industries.With more than 130 years of history and 5 pro-duction mills, S+C supplies the highest quality standards and provides R&D services, installa-tion, operation and maintenance support.In Egypt, S+C counts with the support from Uni-versal International Trading (UIT), Egyptian Com-pany established in Cairo in 1972, with more than 40 years of experience and specialized in the fertilizers, steel, electricity, oil and gas sector

Ruwais Fertilizer Industries – FERTIL

FERTIL was established in October 1980 as a joint venture between Abu Dhabi National Oil Com-pany (ADNOC) and TOTAL, The plant is located in Ruwais Industrial Zone. Construction of a processing plant began in 1980 and production started in December 1983.

The prime objective behind establishing the com-pany was to utilize the lean associated gas sup-plied from the onshore fields to manufacture in-dustrial fertilizers and to market them locally and internationally. In 2013, a new expansion project “FERTIL-2” was completed with a capacity of 2,000 MTPD Am-monia and 3,500 MTPD Urea, which will expand FERTIL’s production capacity and will strengthen the company’s position as a major player in the global petrochemical sector.The market for FERTIL’s products has expanded considerably since its first shipment. Today, about 2% of its annual production of Urea is market-ed locally within the United Arab Emirates, while 98% is exported to the Indian sub-continent, Far East, Africa, USA, Latin America and Australia. FERTIL aspires to enhance its image & standing in the world markets. As sustainability at FERTIL is aligned with the National Vision of UAE, the new plant utilizes state of the art technologies for safety, health, better energy conservation and re-ducing environmental emissions. FERTIL VisionTo be the First Choice Company producing and supplying environmental friendly industrial fertil-izers.FERTIL Mission- To ensure the productivity and integrity of the Company, Staff and Assets with emphasis on UAE Nationals Development.- Manufacture and market Urea in accordance with the International HSE Standards and Quality Management Systems (OHSAS 18001, ISO 14001 and ISO 9001).- Strengthen cooperation with other Stakeholders.FERTIL’s Core Values• Customer Service• Respect• Value Addition• Morale• Community & Environment Commitment• HSE Values

Issue 74 23

Corporate Social Responsibility Seminar

It is noteworthy that civil and governmental companies and organizations are paying spe-cial attention to the concept of corporate social responsibility, which in return promote such entities and create added value of benefit to all society brackets.

Therefore, the Seminar tackled the main concepts of CSR, im-portant of which:• Definition of CSR and the im-portance of applying its theo-retical concept via studying a practical CSR case;

• Identification of CSR frame-work as well as internal and external corporate drivers;

• Explanation of CSR internal framework and its impact on crystalizing corporate charac-ter on the long run;

• Explanation of the different levels and methods of CSR concept;

• Identification of different CSR practical frameworks and how to use such frameworks in managing companies;

• Presentation of practical ex-amples for the different meth-ods used to apply CSR con-cept; and

• Clarification of points to be considered by companies and the values resulting from the diverse applications of CSR concept.

The Seminar was attended by HE Dr. Mohamed Sultan, Gov-ernor of Behaira, Egypt, Chem-ist Saad AbulMaati, AFA Board Member, Engineer Mohamed Abdullah Zain, AFA Secretary General and a number of Egyp-tian fertilizer companies’ chair-men and AFA members. Around eighty attended the Seminar from Arab fertilizer companies’ staff and AFA Secretariat team.

Dr. Mohamed Sultan, Gov-ernor of Behaira, inaugurat-ed the Seminar commending the choice and importance of topic. He stated that CSR is a commitment to, investment in and means of social protection for sustainable development, which contribute in the eco-nomic development of society and State at large. His Excel-lency further praised fertiliz-ers companies’ role across the governorate with regard to CSR, particularly Abu Qir Company efforts exerted in sanitary drain-age fields, wastes recycling, health and sustainability initia-tive and the provision of vacci-nations to governorate patients, rain season assistance initiative, environment preservation and afforestation projects in addi-tion to other effective contribu-tions in CSR field.

In his speech during the Work-shop opening session, Chemist Saad AbulMaati, Abu Qir Com-pany Chairman, affirmed the importance of CSR concept, taking in consideration civil and governmental companies and

3 April 2016, Alexandria, Egypt

The Arab Fertilizer Association (AFA) organized a specialized Seminar for Corporate Social Responsibility (CSR) on Sun-day, 3 April 2016, in Alexandria, held in the Social Club of Abu Qir Fertilizers Company. The Seminar received support from Abu Qir Fertilizers and Chemical Industries Company in cooperation with Arabia CSR Network (Dubai).

Issue 7424

organizations concern provided to social responsibility issues. Also, he added that the social role required from companies is maximizing daily, aiming to create a value of benefit for all society brackets, expand such companies’ services and role in economic development as well as to carry out a clear and ef-fective role in order to take part in providing services, alleviate people suffering and contribute seriously on community devel-opment.

This inevitably exceeds the traditional role of companies, namely working only on com-mercial basis to achieve the best outcomes and profits, thus benefiting company stakehold-ers from one side and national economy, represented in direct returns from taxes and related fees, from another side.

Then, the Chairman of Abu Qir Fertilizers Company mentioned that such a responsibility ex-panded to include all society categories. To elaborate, it is reflected in the commitment to surrounding environment as well as vocational safety and staff rights. In addition it is shown in the establishment of specialized training centers and raising the capacities not only of staff but also of community people, to better qualify them for subsequent job opportuni-ties. It is noteworthy that all of the previously mentioned is be-ing carried out within a frame-work of commitment to the rules of competition and putting aside monopoly and dumping practices.

Practical experiences have shown that as much as the

scope of companies’ contribu-tion in serving local commu-nity expands, as much as it is clearly reflected on achieving political and economic stabili-ty and social security. This fur-ther contributes effectively in sustainable economic devel-opment and entrenches com-munity people satisfaction with companies’ performance. So-cial responsibility concept was developed and graded as a re-sult of numerous occurring de-velopments, including the pre-vailing concept of globalization besides the various local and multinational companies rais-ing the slogan of respecting so-cial responsibility, human rights and environment preservation. Notably, all of the aforemen-tioned is being applicable in a glimmering way in line with people needs.

Moreover, these efforts are ex-erted amidst the increase in people and governmental de-mands calling for the protection of consumer, human being and environment. This has been ap-plied also to avoid grass-root pressures and achieve concil-iation with the society at large and the areas where compa-nies’ economic activities are taking place in particular.

Taking in consideration all of the above mentioned, some companies are still unaware of the social responsibility signifi-cance and related means of ef-fective contribution. Therefore, there is a dire need for compa-nies to establish clear policies and meaningful social projects. These projects are being agreed upon with the relative commu-nities, bearing in mind such communities needs and expec-tations, hence positively affects

Issue 74 25

require fertilizer companies’ effective contribution?

• Is it of benefit for our com-pany to provide societal pro-grams and activities? Or is it obliged, as per the system and in principle, to contribute in local development?

• What are the socially required programs?

• Is it of benefit to form an of-ficial entity entrusted with the social responsibility issue?

• Will social responsibility awareness have a positive and remarkable impact on the development of micro, small and medium factories? What is the extent of such an impact on the private sector?

• Is there a necessity to have common Arab work between social responsibility networks or institutions?

He also mentioned that there are other numerous questions,

both parties’ linkages and deep-ens community acceptance to such companies activities. All of the previously stated is in line with abiding by the rules and legislations governing the activities of these companies. Undoubtedly, social responsi-bility is a principle promoted by Islamic religion via Holly Quranic verses and Prophet Mohamed (Peace and Blessings of Allah be Upon Him) sayings with regard to dealings, coexis-tence, legitimate duties and so-cial solidarity.

Accordingly, AFA chose to in-vite a regionally and interna-tionally specialized institution to tackle such a vital issue.

Engineer Mohamed Abdullah Zain delivered a speech during the opening session, in which he referred to AFA belief in the fact that fertilizer industry can-not survive and develop except in the shed of a sustainable de-velopment system. A system that take in consideration the economic, technical and envi-ronmental aspects in addition to the relationship with local communities. His Excellency AFA Secretary General stated that holding such an important Seminar em-phasizes that fertilizer industry is a strategic one, which cares for human present and future, merges economic activities with social responsibility pro-grams and participates in an effective way. Engineer Zain posed a number of questions in this regard, important of which:

• What are the requirements needed from Arab fertilizer companies towards society? What are its expected role?

• What are the societal prior-ities and serious issues that

which hopefully can be an-swered during the Seminar.

Then the Seminar sessions start-ed by Dr. Hanan Abass, con-sultant in Arabia CSR Network, as she tackled the concept of sustainability and the issues of sustainability on the interna-tional level and MENA region. Afterwards she highlighted the definition of CSR and some of the common perceptions about social responsibility. In addition Dr. Hanan pinpoint-ed the positive impact of CSR on the government, communi-ties, partners, companies and near future. She also discussed the questions “why companies should participate in social re-sponsibility efforts?” “What are the four main reasons for CSR?” Moreover, she presented the step-by-step approach to so-cial responsibility. (Refer to AFA Webpage for the full presenta-tion) The Seminar has concluded with a number of significant recommendations, summarized by Mr. Saad AbulMaati as fol-lows:- Establish a geographical com-mittee for Abu Qir area to ef-fectuate the concept of social responsibility and improve the environmental status, in cooperation with the industri-al companies, CSOs, NGOs, universities, research centers, executive bodies in Alexan-dria and Behaira governorates, social responsibility organiza-tions and media means.

- Establish a social responsi-bility union in contribution with the industrial companies, CSOs, NGOs, universities, re-search centers, executive bod-ies in Alexandria and Behaira governorates, social responsi-bility organizations and media means.

Issue 7426

AFA WORKSHOP Process Safety Management(PSM) and InspectionKuwait: 24-26 May, 2016

منظمـة عـربـيـة دولـيـة

Sponsor:

PETROCHEMICALINDUSTRIES COMPANY K.S.C.

A Subsidiary of Kuwait Petroleum Corporation

( ∑ Ω ¢T) á«dhÎÑdG äÉjhÉª«µdG áYÉæ°U ácô°T

á«àjƒµdG ∫hÎÑdG á°ù°SDƒe äÉcô°T ióMEG

منظمـة عـربـيـة دولـيـة

AFA WORKSHOP Process Safety Management(PSM) and InspectionKuwait: 24-26 May, 2016

Registration & Accommodation Form Simply complete this form and return it to AFA Conference Service by either:

E-mail: [email protected] or by Fax: +20 2 23054465-66

Registration forms could be downloaded from the website (in PDF format)

First Name: Family Name:

Position: Company Name:

Business Address: Country:

Tel: Fax: Email:

Date: Signature:

Registration Fees per delegate US$ 1500/ per delegate

Method of payment: Cheque To the order of Arab Fertilizer Association (AFA)

(Pls. include registrant’s name attached with cheque)

Bank Transfer to AFA Account: Arab Fertilizer Association

(CIB) Commercial International Bank - A/C No: 100009870533

Swift code: CIBEEGCX-020 - Nasr city branch – Cairo – Egypt

Bank transfer should include: Name of the company; Name(s) of the delegate(s);

All transfer charges must be paid by the transferor. Credit cards

Cash

ACCOMMODATION AND VENUEHotel Venue: The Radisson Blue Kuwait Hotel

ROOM TYPE ROOM RATES ($US) Single Room 150

Above rate is per room per night, including breakfast, tax and services.

Arrival details:Date: Flight # and ETA

Departure details:Date: Flight # and ETD

AssessDefine

Measure

Analyze

I m

prove

P

M control

Operation and Maintenance Optimization11- 14 April 2016, Aqaba, Hashemite Kingdom of Jordan

Based on the objectives of the strategic plan designed to develop AFA performance, which aims at enhancing productivity via tech-nical development and qualification as well as expanding fertiliz-ers factories capacities, AFA organized in cooperation with AFA Jordanian companies a workshop titled “Operation and Mainte-nance Optimization”, held in Aqaba, Hashemite Kingdom of Jor-dan, from 11 to 14 April 2016.

AFA Workshop

This Workshop covers the state-of-the-art technologies and sys-tems related to operation and maintenance fields. It further tackles in-depth nitrogenous, phosphate and potash fertilizers industries together with min-ing processes. Also, it targeted, through exchanging expertise and information, raising partic-ipants’ awareness of the follow-ing: - The best technological meth-

ods for factories operation;- Rehabilitation and raising the

efficiency of existing units;- Mining processes and trans-

porting materials;- Ammonia.The latest factories operation and maintenance systems were handled in detail:- Urea;- Sulphur Acid;- Phosphoric Acid;- Maintenance management,

quality and productivity;- Development of maintenance

electronic programs and sys-tems to ensure quality and distinguished maintenance results;

- Designing assessment meth-ods for maintenance perfor-mance and teams efficiency;

Issue 7428

- Impact of engineering inspec-tion and regular maintenance on increasing fertilizers in-dustries productivity.

Besides,• Regular maintenance and

impact of preventive mainte-nance programs;

• Integration of maintenance and production operations;

• Impact of effective pre-ventive maintenance pro-grams;

• Maintenance of main rotating equipment.

His Excellency Secretary General mentioned that ThysseenKrupp Industrial Solu-tions and PRAYON companies will implement the Workshop program, being significant in-ternational companies in such a field.During the Workshop open-ing ceremony both Mr. Bassam Zumoot, representative of Arab Potash Company, and Mr. Eid Walidat, representative of Jor-dan Phosphate Mines Compa-ny, welcomed the attendants, wishing them a pleasant stay and fruitful Workshop.Furthermore, the Chemist Saad Abu Al Maati, AFA Board mem-ber and Chairman of Abu Qir Fertilizers and Chemical Indus-tries Company, began his wel-come speech by extending deep appreciation for all the people, who contributed in preparing and organizing the Workshop,

particular-ly Jordani-an compa-nies and AFA members.

In addition, he pinpointed AFA policy, which seeks to entrench interaction practices among member companies in order to exchange expertise; hold specialized workshops and programs in line with industry

requirements; tackle industrial problems occurring as a result of the operational processes; ensure the provision of main-tenance and security elements

in factories; apply the best and latest systems to run

factories with the most efficient, professional, high quality and com-prehensive applications. He also stated that the re-

ferred to significance has been taken in consideration

together with the promotion of Arab fertilizer industry

technological aspect. This has been reflected in the presence of internation-al companies such as Thyseenkrupp Industri-al Solutions, to provide

the latest developments in this regard, present the most successful experiences and

exchange accumulated expertise and knowledge with AFA members.

In his speech, he wished in the shed of such a re-

markable attendance, rep-resenting a galaxy of Arab

companies’ engineers, to hold remarkable discussions de-pending on enhancing this kind of technology in the Arab re-gion. In concluding his speech, he expressed, on behalf of AFA Board, all gratitude to Jordani-an companies’ chairmen and all companies’ representatives

Issue 74 29

for the outstanding support and hospitality.

Afterwards, Engineer Mo-hamed Abdullah Zain deliv-ered a speech in the Workshop opening ceremony, in which he extended his thanks for the warm hospitality and detailed arrangements and organi-zation made by the sup-porting teams, especially Arab Potash Company and Jordan Phosphate Mines Company. He fur-ther thanked Jordanian companies for the continu-ous support for AFA activities and proceedings in addition to convening such a Workshop.

He then added that “Opera-tion and Maintenance Work-shop” is held as part of the proceedings and activities specified in AFA 2016 Plan. En-gineer Zain highlighted looking forward, as per the Workshop program and the distinguished attendants exceeding 115 par-ticipants, to study and apply the best international technological systems to maintain running of factories by using the best and most successful applicable methods; being highly profes-sional and efficient with regard to operation, maintenance and controlling costs.

AFA SG reaffirmed that regu-larly applied maintenance op-

to efficient experts from Thy-seenkrupp Company, being one of the internationally reputable and experienced companies

working in such a field.

At the end, he re-wel-comed the attendants and thanked the Jordanian companies’ chairmen and the team assigned for the

organization of this Work-shop for their great support

and coordination, and they are as follows:

- Arab Potash Company- Jordan Phosphate

Mines Company- Indo-Jordan Chemicals

Company (IJC)- Nippon Jordan Fertiliz-

er Company (NJFC)- Arab Fertilizers and

Chemicals Industries (KEMPACO)

It is noteworthy that the three-day Workshop en-

compassed one hundred and thirty participants from AFA Arab member companies. The participants further, on the fourth day, paid a field visit to the factories of Jordan Phos-phate Mines Company in Aqa-ba city and then had a touristic visit to Petra city.

e r a t i o n s contr ibute in ensuring factories ongoing work. Believing in the significance of such vital issue and in line with AFA policy, aiming at convening workshops to enhance operation, produc-tion and maintenance efficien-cy in general, AFA has entrusted the Workshop implementation

Issue 7430

Session I• General presentation of tkis

Asset Management O&M Capa-bilities Mr. Stefan Dähn& Mr. Olaf Kraska

• Maintenance Strategies & Con-tracting Options Mr. Stefan Dähn

• Maintenance Engineering - From Equipment to

Maintenance Plans Mr. Olaf Kraska

• Recent Asset Management Proj-ects and their

Particular Challenges Mr. Stefan Dähn& Mr. Olaf Kraska

Session II• Service Portfolio for Mining

Systems & Materials Handling EquipmentMr. David Bovenkerk

• Crushing, Grinding & Pyropro-cessing Mr. Tobias Koch

• Operation with Modern Crushing Technology Mr. Tobias Koch

Session III• Plant Assessments (GAP anal-

ysis) - Identification of Projects to Improve O&M Performance Optimization Mr. Stefan Dähn

• Success Factor CMMS - Imple-mentation and Optimization Mr. Stefan Dähn& Mr. Olaf Kraska

• Spare parts handlingMr. Richard Kempken

Session IV • The Newest Development for Sul-

phuric Acid and Sulphur Melting Plants, Emission Reduction and Improved Heat Recovery Dr. Z. Guetta

• DH PAP Plants Upgrades: Inher-ited Values in Transforming DH Based Processes to HH Based Processes Mr. Malik Aqel

• DA-HF Process for Plant Up-grades of DH Plants. Mr. Tibaut Theys -Prayon

• Operational Reliability of Filters in Phosphoric Acid Plants. Mr. Michel Dassy -Profile

• General DiscussionSession V• Safe Start-up of Ammonia / Urea

Plants under Challenging Cir-cumstances

Mr. Christoph Meissner• Energy Consumption for Ammo-

nia / Urea Production, Analysis and OptimizationMr. Christoph Meissner

• tkis Technology Services for Your Ammonia Plant Dr.Guenter Voelker

• New Loading Method for NH3 Converter Dr. Guenter Voelker

Session VI• Challenges in integrated AN

Complexes Dr. Jens Mathiak

• Granulated Ammonium Sulphate Plant Dr. Jens Mathiak

• Increase of Production Capacity of Existing Ammonia Plants Mr. Christoph Meissner

• General Discussion• Closing

Program

Issue 74 31

Depending on Arab fertilizer companies’ belief in social responsibility and contribution to com-munity development besides following the steps of the successful Moroccan experience with regard to OCP agricultural caravans, AFA suc-ceeded in cooperation with Evergrow Compa-

ny to launch the first agricultural caravan; being the first of its kind to be facilitated by a fertil-izers company in Egypt. Therefore, AFA wishes to mainstream such an experience later in other Arab countries, as such caravans aim to intro-duce farmers to the locally provided types of fer-

Evergrowlaunches FirstAgricultural Caravan in Egypt

Under the Patronage of The Arab Fertilizer Association (AFA)

Issue 7432

tilizers, the impact of ratio-nalized fertilizer usage on yield increase and the different types of fertilizers needed for agricultural soil. On early April, 2016, EV-ERGROW Company launched for the first time in Egypt the ag-ricultural caravan, heading to Egypt governorates. The caravan vehicles roamed the Egyptian villages and met with farmers to raise their awareness re-garding rationalized fertilizers usage, so as to increase agricultural productivity and preserve the environment by avoiding excessiveness of usage. The caravan further sensitized and warned farmers with regard to the usage of counterfeit pesticides. To elaborate, the caravan was ac-companied with farmers-related workshops, in-cluding experts and agricultural extension offi-cer, to inform farmers about means of nurturing plants, since early stages of growing, preparing

soil and spreading seeds to other different plant-

ing phases. The work-shops also highlight-

ed the application of modern technological

methods in ploughing, seeding, sound dripping and

sprinkling irrigation, harvesting, marketing and avoiding yield dam-

age or loss. Moreover, experts have answered all farmers’ queries regarding

all of the above. The agricultural caravan was also accompa-

nied by a medical one to examine virus-infected patients. This is considered an exemplary modal of corporate social responsibility, for touching on farmers’ daily lives in order to enhance re-lationships with companies and build bridges of trust between farmers and fertilizers indus-try. Farmers and their families were accordingly medically examined so as to be provided with adequate treatment and instructions were ap-plied to raise their awareness concerning the growing of different crops. Specialized physi-

Issue 74 33

cians, in viral and other diseases infecting farm-ers and their families, were present, examined patients and provided them with treatment cov-ered by Company. On the margins of the caravan, an exhibition was held including a number of Arab fertilizer companies, which were introduced closely to farmers, communicated with them, responded to their questions and provided them with fertilizers sacks. It is worth mentioning that this cara-van was implemented by AFA, after being introduced to a similar Mo-roccan experience made by OCP. In the last caravan day, Evergrow Company invited Arab fertilizers companies and represen-tatives of Arab and interna-tional organizations, including Arab League, IPNI and FAO, to attend such a remarkable agricul-tural proceeding closing ceremony in order to get to know and mainstream such a successful experience. H.E. Mr. Mo-hamed Mohamed El Kheshen, Chairman of Evergrow Company, delivered a speech in this occasion, in which he welcomed the attendants saying ”it is my great pleasure to meet you all today in such a unique and one of a kind event in Egypt; the agricultural caravan of Evergrow Company for Specialty Fertilizers held in co-operation with AFA. I would like, in this con-text, to extend my thanks and appreciation for your effective participation and support leading to the success of the caravan proceedings. We should also extend special thanks to Mr. Jamal Al Sarayrah and the staff of Arab Potash Compa-ny for the financial and technical support pro-vided, which undoubtedly affirmed the sound

and extent of cooperation and partnership with Evergrow Company.” Mr. Kheshen then dwelled commending the caravan idea, which preoccupied Evergrow Company from a long time. He added that the accomplishments achieved on real grounds are the fruit of AFA effective participation with the giant Moroccan OCP Company in a similar

event. This event was the beacon that attract-ed the attention to the need, not only in

Egypt but also across the Arab region, to interact with the Arab farmers, being

the cornerstone of such an industry stakeholders, and assist them in

approaching agricultural de-velopment field equipped

with science, knowledge and technology.

Furthermore, he mentioned that the achievements of the

caravan, though great, are min-imal with regard to the needs and

requirements of enhancing econom-ic development in the Arab region. The

challenges facing the Arab region and the disputes affecting most of the Arab countries

were the main motive for paying attention to lo-cal and Arab markets. Thus, strenuous efforts are exerted to encounter such challenges in order to achieve actual development that represents a catalyst for attracting foreign investments, par-ticularly African and Asian. He then mentioned that Arab markets psycho-logical connection to foreign companies’ prod-ucts is adversely reflected on local companies’ production, by being classified in a lower rank compared to the foreign ones. Taking the above mentioned in consideration, Engineer Kheshen said that “such attitude is attributed to Arab markets lack of knowledge regarding the level of progress achieved by lo-

Issue 7434

cal companies and their capacity to join inter-national markets, for enjoying good reputation and quality products fulfilling international stan-dards. Also, the lack of interaction between our Arab re-gion companies and local markets, as required, is considered an assisting factor in entrenching the referred to negative idea.”He further stated that there is a dire need to have an effective role in developing our societies and actually contributing in raising people aware-ness. It is noteworthy that Evergrow became aware earlier with such an issue, thus had huge contributions in spreading fertilizer awareness among its local customers. This has created high level of confidence in the Company products re-sulting in an increase in demand and according-ly raising investments to meet such needs.“The main goal of our Company is and still to cope with, strengthen and locally make use of the scientific and technical development of plant nutrition system. This is to be applied with more awareness raising and application efforts, to contribute in increasing agricultural production as well as Egyptian and Arab farmers’ returns; positively reflected on Arab region economies.In the shed of the previously stated, we dedicat-ed our efforts to develop specialized fertilizers production methods. Hence, we established the first industrial compound in Abo Rawash area then ambitiously constructed the second indus-

trial edifice in Sadat industrial city in Monofi-ya governorate in 2011/2012. The latter was an outcome to the great Egyptian revolution, built using the latest technological methods and aim-ing to have an actual positive impact on Egypt economy and development fields.With great pleasure, as Evergrow Board Chair-man I would like to extend the good news for agricultural and fertilization stakeholders, Ev-ergrow system of specialized fertilizers will be complemented by the end of 2017. It will be one of the great specialized international systems in producing solvent potassium sulfate, manufac-tured by using the latest system of developed furnaces. Accordingly, the Company production capacity will reach then 400 thousand tons/ an-nually with investments estimated by EGP 4.5 billion, equivalent to about USD 450 million”, he said. In concluding his speech, Engineer Kheshen re-thanked Engineer Mohamed Abdullah and AFA staff in addition to all fertilizers producing com-panies for their cooperation and concern. He also extended appreciation to El Nasr Company for Intermediate Chemicals chaired by General Mokhtar Abdellatif and to the great team that participated in the caravan proceedings from Ev-ergrow staff for their devotion and remarkable efforts exerted for the success of such an event in Egypt. Then, H.E. Mr. Saad AbulMaati, AFA Board

Issue 74 35

member and Chairman of Abu Qir Fer-tilizers and Chemical Industries Com-pany, also gave a speech in this ceremony. In his speech, he af-firmed that modern agricul-tural processes have taken wide strides towards the maximization of agri-cultural production to fill in the gap of the grow-ing demand on food com-modities and seek the achieve-ment of food security, which is closely related to economic growth, social advancement and political sta-bility. He added saying that food security agenda is based on rural agricultural and development processes, which are achieved through the enhancement of sustainable produc-tion, productivity and rural economic growth. Mr. AbulMaati further said that chemical fertil-izers are among the main factors for increasing agricultural production, as using mineral fertil-izers has contributed in increasing agricultural crops productivity by at least 55% and even us-ing such fertilizers is one of the main reasons for the advancement of agricultural advancement, achievement of green revolution and combating of hunger across the world. Moreover, within the framework of AFA strive to emphasize on fertilizers decisive role in achieving sustainable agricultural development and food security, which essentially depend on sound and sustainable agriculture, AFA has called for increasing agricultural extension and awareness raising activities. These activities tackle the rational usage of different mineral fer-tilizers forms and elements and identify better methods to improve fertilizers usage and envi-ronment protection, in a completely balanced

way during different plant growth phases, as such have a remarkable return on ag-

ricultural productivity. In relation to the Moroccan ex-

perience, Mr. AbulMaati said that AFA and member com-

panies have widely ben-efited from such an ex-

perience and also from launching agricultural exten-

sion caravans, aiming to raise farmers’ awareness of rationally

using different types of fertilizers. As such assists in increasing agricultur-

al productivity of strategic crops as well as protecting the environment, via avoid-

ing excessive usage that adversely affect soil and water. These caravans’ tasks included also directly connecting between fertilizers factories and farmers, to closely define the obstacles hin-dering farmers’ usage of fertilizers in particular. The caravans also was entrusted with supporting fertilizers’ manufacturers’ to raise awareness of fertilizer-related issues and latest technological methods. Notably, AFA in cooperation with Evergrow suc-ceeded in effectuating the first agricultural car-avan in Egypt. He, thus, repeated the desire to disseminate such an experience across the Arab countries, based on the companies’ belief in the significance of social responsibility and the con-tribution in society development. The caravans aim to introduce farmers to different local types of fertilizers and related increase impact on lo-cal markets. Mr. AbulMaati also mentioned that such an ex-perience seeks to find innovative and new ways to extend bridges of direct communication be-tween fertilizers manufacturers and farmers.

Issue 7436

This endeavor assists in holding direct dialogues, discussions, deliberations and interventions that may result in serious and realistic decisions to better affect agriculture production and crops pro-ductivity. It further leads to amending manu-facturing and marketing paths to use modern meth-ods extracted from the ide-al usage of fertilizers. All of the aforementioned will be applicable by virtue of such agricultural activity, which calls for constructive interaction for the sake of Man and food security. At the end of his speech, Mr. Maati confirmed that fertilizer is a strategic industry representing a main entry to agriculture sector, inevitable for the achievement of sustainable agricultural de-velopment, elimination of food gap, reduction of hungry people rate and achievement of tar-geted self-sufficiency.He concluded by expressing appreciation to Ev-ergrow Chairman and staff.Engineer Mohamed Abdullah Zain, AFA Sec-retary General, then followed with a speech delivered during such a ceremony, in which he praised the success of Evergrow experience and AFA role in applying one of the pioneering Arab experiences, to entrench fertilizer industry role in agricultural development. Furthermore, he highlighted that such an experience has been first introduced in Morocco and was supported by the biggest phosphate fertilizer factory in the world, namely OCP.Engineer Zain stated that being a great experi-ence, Evergrow received and appreciated the caravans’ idea when introduced by AFA Secre-tariat. Therefore, it sent a technical delegation to participate in the agricultural workshop prepared by AFA in Casablanca, in which all member companies took part. The sound management of Evergrow has sensed the dire need in Egypt to

such a kind of experiences, accordingly its national belief and keenness upon

Egyptian agriculture development urged its management to adopt

and implement such a prac-tice in Egypt.

By all means, this pro-ceeding is one of the

corporate social respon-sibility activities, especially

when interacting directly with farmers regarding their health care

issues; a practice provided during the medical caravan accompanying the agri-

cultural one. The caravan indeed will give an opportunity to

fertilizers manufacturers to meet with farmers directly, in order to define, overcome and find solutions to the obstacles and impediments en-countered. On the other side, the farmers will get to know through the workshops accompany-ing the caravan the different means of:- Preparing, ploughing and growing the lands;- Defining the best methods of fertilizers usage;- Taking care of plants during different growth

phases and methods of irrigation;- Harvesting and minimizing related losses then

the best methods of marketing agricultural crops.

Given these points, Engineer Zain concluded his speech by thanking Mr. Maati, AFA Board mem-ber, for his attendance. He also expressed his appreciation to Engineer Mohamed El Kheshen and Evergrow staff for their ongoing fruitful com-munication with AFA Secretariat and effective efforts exerted for the success of the event. To sum up he wished the Secretariat all success in applying significant experiences to Arab coun-tries and member companies of benefit not only to agriculture but also to all aspects of fertilizers industry.

Issue 74 37


Issue 7438

Issue 74 39


Issue 7440

Cal

enda

r AFA Events

August 2016• Energy Saving in Fertilizer Industry - Workshop

AugustMorocco

October 2016• 29th AFA Int’l. Fertilizer Technology Conference & Exhibition

11-13 October 2016, Tunis

November 2016• Plant Nutrition, Economic

Farming - WorkshopNovember 2016 Saudi Arabia

• Turnaround Management - Workshop

November 2016 Saudi Arabia

Non AFA Events

May 2016• NPK Fertilizers Vietnam 2016

Argus FMB Technical Fertilizer Conference and Exhibition

25-27 MayHo Chi Minh City, Vietnam

• 84th IFA Annual ConferenceMoscow, RussiaIFA

30 May – 1 June 2016

June 2016• Argus FMB East Europe Fertilizer 2016

Argus FMB15-17 June, Krakow, Poland

October 2016•IFACrossroadsAsia-Pacific&

IFA Production & International Trade Conference

IFA25 -27 October 2016, Singapore

Argus FMB Europe Fertilizer 2016 Argus FMB

26-28 October, Cannes, France

November 2016Sulphur International Conference

& ExhibitionCRU Events

7-10 November, Istanbul, Turkey

IFA Strategic ForumIFA

27-28 November, Dubai, UAE

Issue 74 41


Issue 7442

Issue 74 43

Extending low temperature shift catalyst lives

Studies & Research

Adnan Ghani / K. Manikandan Johnson Matthey

Belasis Ave, Billingham Cleveland, TS23 1B, UK

The performance of the Low Temperature Shift (LTS) catalyst has a significant effect on the efficient and economic operation of Ammonia and Hydrogen plants. With its high activity, high performance and self-guarding capability, KATALCOJM LTS cata-lyst can meet the most challenging of plant require-ments.

1. Introduction The water gas shift reaction plays a major role in

ammonia and hydrogen plant design and operation. [1]. It removes carbon monoxide, CO, from the steam reformer product gases by reaction with the residual steam in the steam reformer effluent to give carbon dioxide, CO2, and additional product hydro-gen, H2. In ammonia plant designs, by far the major-ity of plants operate a two stage shift system with a high temperature shift (HTS) converter followed by a low temperature shift (LTS) converter with a suit-able form of inter-bed cooling. This configuration is also found in some hydrogen plant flowsheets. Good performance of the shift catalysts, and attainment of close approach to equilibrium and hence minimiza-tion of CO slip from the catalyst system is critical to the efficient and economic operation of the plant and ensures maximum hydrogen production from the hydrocarbon feed stock.

Historically the best LTS catalysts are made from copper supported on a mixture of zinc oxide and alu-mina. Indeed supported copper has been known to be a catalyst for the water gas shift reaction since 1928. The preparation of a copper-zinc oxide-alu-mina catalyst needs to provide the correct balance of stabilizers and crystal size to achieve a long and stable operating life; it is the right balance of cat-alysts properties which will provide operators with the ability to manage their LTS catalyst lifetimes in line with their planned major overhaul schedules.

Many different catalysts have been formulated since the first industrial applications of LTS in 1961. Some have failed so quickly that it has been relative-ly easy to characterize their properties and perfor-mance. The catalysts that were most successful, such

as KATALCOJM 52-1, consistently possessed two key properties; thermal stability and resistance to common poisons. Since then successive generations of commercial LTS catalysts have been based upon a CuO/ZnO/Al2O3 formulation, with each component playing a specific role in catalyst performance.

With the growing focus on efficiency and the cost of operation, maintaining and improving LTS cat-alyst life and performance is essential. In addition, many ammonia plants are moving to longer multi week overhauls every 5-6 years, sometimes with shorter one week overhauls every 2-3 years which do not provide sufficient time to replace many of the catalysts.

There is no such thing as an ideal catalyst as there are a number of factors which affect catalyst per-formance during operation. Side reactions often take place under normal operating conditions, for exam-ple methanol is formed across water gas shift cata-lysts. Side reactions can also take place if the reactor is operating outside of normal operating conditions.

Catalysts change over time and do not remain in-finitely active, but this deactivation is not due to the catalysed reaction that takes place. Deactivation can take place due to: • Physical changes over time on line at normal oper-

ating conditions, for example sintering where crys-tals in the catalyst structure migrate at normal oper-ating temperature and gradually coalesce, reducing the active surface to catalyse the reaction.

• Trace contaminants in the process gas (poisons) that result in unwanted chemical reactions taking place with the catalyst resulting in fewer active sites.

• Deactivation and/or damage due to temperature excursions outside the normal operating envelope. LTS catalyst formulations are therefore a balance

between thermal stability (preventing copper crys-tals from sintering and reducing the active surface), poisons resistance (minimising the impact of sulphur and chloride poisons on the catalyst performance), selectivity (preventing methanol formation across the active copper component) and activity (ensuring that the catalyst can achieve the lowest possible CO slip).

This paper focus on one aspect of plant operation that has an impact on LTS operation; catalyst poi-sons. This aspect of plant operation has an impact to a greater or lesser extent on all plants that operate low temperature shift catalysts.

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2. Shift catalyst development and evaluation Before we look in more detail at catalyst poisoning,

let us consider LTS catalyst development and evalu-ation. Johnson Matthey has an in depth understand-ing of LTS catalysts as a result of years of research and development into this area. As a result of this the KATALCOJM 83•3 series is the fourth generation of LTS catalysts offered by Johnson Matthey. The development of this catalyst series has resulted in the best self-guarding and most selective low tem-perature shift catalysts currently available.

Catalyst testing is central to understanding the per-formance of catalysts in service. Johnson Matthey laboratories perform catalyst testing and analysis un-der realistic operating conditions to determine cata-lyst performance. In addition to this, pilot testing and audits of catalyst activity in service (through labora-tory analysis of discharged catalyst samples) also pro-vide insight into methods for extending catalyst life.

2.1. Stages in catalyst testing Johnson Matthey use a wide range of techniques,

from micro reactor through to full plant operation to test their products, as illustrated in Figures 1A and 1B.

• Micro reactor The primary use of a micro reac-tor is to determine the relative activity of different products during development. Operating at plant conditions, the micro reactor is fully automated and has the facility to alter the inlet gas composition to achieve any reasonable composition, mimicking actual plant operation. This micro reactor has been used to develop the current range of KATALCOJM catalysts.

• Full pellet testing Johnson Matthey use full pel-let testing for trial and plant manufactured prod-ucts where the products are tested for their physical properties as well as activity/lifetime.

Operating at plant conditions, this is fully automated and has the facility to alter the inlet gas composi-tion to achieve any reasonable composition, again mimicking actual plant operation. The unit has the facility to add known catalyst poisons into the feedstock and monitor catalyst performance versus the build-up of poison on the catalyst.

•Pilot Plant In this unit the catalysts see operation un-der real conditions with the gases the catalyst would be subjected to during normal plant operation. Years of operating experience of Johnson Matthey prod-ucts on real plants also means that they can scale up the performance of our products from pilot plant to full plant operation using proven correlations.

Figure 1 A: Microreactor and pilot plant

Figure 1 B: Microreactor and pilot plant

2.2. Analytical techniques used to further prod-uct development

In addition to testing catalysts, Johnson Matthey also use a number of other techniques in their prod-uct development.

Using microscopy, such as the equipment illustrated in Figure 2, they have the ability to observe and film events as they occur in real time. This means that re-actions can be followed as they take place and real time observations of the structure property gained.

Johnson Matthey also use a technique called Elec-tron Probe Micro Analysis (EPMA) using equipment such as that in Figure 3. This allows surface imaging of a catalyst sample to observe the basic characteris-tics and compositional variation. Spatially resolved images of the distribution of different elements can also be produced.

Figure 2: Transition Electron Microscope

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Studies & Research Figure 3: Electron Probe Micro Analysis (EPMA)

3. Poisoning and LTS catalysts It is well known that poisoning is the primary de-

activation mechanism for low temperature shift cat-alysts. Resistance to poisons is therefore one of the most important properties for a low temperature shift catalyst. Sulphur and chloride are the most common LTS catalyst poisons.

3.1. Sulphur poisoning Sulphur, often as hydrogen sulphide, can be found

in feedstock such as natural gas and in compressor lube oils. Sulphur reacts with the active copper to form copper sulphide, a stable component that will not be removed from the copper even if the source of sulphur contamination is removed. Copper in the catalyst is then no longer available to catalyse the wa-ter gas shift reaction. Hence, it is very important to minimize the level of sulphur coming through to the LTS by maintaining an effective feedstock purifica-tion system.

In laboratory experiments using Electron Probe Micro Analysis (EPMA), the surface of the sample is bombarded with an electron beam and the element specific X-Rays measured.

This technique is useful for mapping the position of poisons on a catalyst. Figure 4 shows three imag-es from EPMA analysis on catalyst particles which have been exposed to sulphur for a short period of time, so sulphur is only present on the catalyst par-ticle surface. Figure 4a shows the EPMA scan of the edge of the catalyst pellet. Figure 4b highlights the sulphur present and Figure 4c highlights the copper present. The surface is the initial point of contact for any poisons. By focussing on the surface behaviour of poisons on LTS catalysts, improved formulations and in service microstructures can be developed to best manage these poisons on the LTS catalysts.

Figure 4a: EPMA of a catalyst prticle exposed to sulphur

Figure 4b: Sulphur presence in particle (blue)

Figure 4c: Copper presence in particle (red/pink)

KATALCOJM 83-3 series products provide excel-lent self-guarding against sulphur poisoning. This is due to the catalyst formulation and the way in which the catalyst is manufactured.

With KATALCOJM 83-3 series products as H2S molecules approach the surface of the catalyst, sul-phur species first adsorb onto the copper component of the catalyst. This blocks and prevents any reaction from occurring on these sites. Once adsorbed, the sulphur species becomes mobile within the micro-structure of the catalysts subsequently reacting with the free zinc oxide on the catalyst surface, forming a surface zinc sulphide species. Further reaction leads

Issue 7446

to the formation of bulk zinc sulphide species which is what is observed in discharged catalyst samples. This is thermodynamically the most stable end point for sulphur in a LTS catalyst.

It is only when the bulk of the free zinc oxide in the catalyst pellet has been fully converted to ZnS that the H2S finally attaches to and remains on the Cu spe-cies, at which time the copper is fully poisoned and no longer able to catalyse the shift reaction. This zinc availability in KATALCOJM 83-3 products provides the self-guarding capability of these LTS catalysts. It is this self-guarding capability that results in an ex-ceptional level of sulphur being secured in the bed.

3.2. Chloride poisoning The impact of chlorides on LTS plant operation

can vary widely as a result of the different ways in which chlorides can get into the feed gas stream – it can be through the plant feedstock, steam quality, compressor lube oils and the secondary reformer air supply. This is why it is usual to see more chloride LTS poisoning in ammonia plants close to the coast compared to plants in land.

Chlorine compounds are often present in process gas streams in extremely small concentrations that cannot be detected by typical analytical procedures. The poi-soning effect is cumulative so that any concentration of chlorine in process gas will eventually poison the catalyst bed and detection is only possible by the anal-ysis of samples then from discharged catalyst.

Figure 5 shows the results from an electron micros-copy study of a sample of KATALCOJM 83-3 cata-lyst discharged from a plant which had been subject to chloride poisoning. It shows how the poisoning has disrupted the structure of the catalyst at the atomic lev-el. There is a large, almost spherical lump of copper present in the catalyst. This is much larger than the cop-per crystallites seen in discharged samples which have not been subjected to chloride poisoning and results from the formation of CuCl which is able to catalyze the sintering of the copper component of the catalyst.

There are also large crystallites of ZnO present, again much larger than any seen in similar studies of non-chlorinated samples. These result from the for-mation of ZnCl2 which is also a low melting point solid and so mobile under LTS conditions.

As HCl molecules approach the surface of the LTS catalyst, chloride species first adsorb onto the copper component of the catalyst. This blocks and prevents any reaction from occurring on these sites. Once ad-sorbed, due to the low melting point of the chloride species, the resultant particles are extremely mobile within the microstructure of the catalyst, significantly more so than the equivalent sulphur species. Conse-quently even very small amounts of chloride provide the “catalytic” species necessary for a surface-migra-tion sintering mechanism of the copper crystallites. Similar processes involving zinc oxide also take place on the catalyst surface, forming a surface zinc chloride species. Further reaction leads to the formation of bulk zinc chloride species which is what is usually observed in discharged catalyst samples. This is thermodynam-ically the most stable end point for chlorides in a LTS catalyst. It is only when the bulk of the free zinc oxide in the catalyst pellet has been fully converted to chlo-ride species that the HCl finally attaches and remains on the Cu species, at which time it is fully poisoned and no longer able to catalyse the shift reaction.

The formulation and manufacturing methodology ensures the availability of zinc in KATALCOJM 83-3 products which provides the self-guarding ca-pability of these LTS catalysts. It is this self-guard-ing capability that results in an exceptional level of chlorides being secured in the bed.

In addition to its standard LTS catalyst, KATAL-COJM 83-3, Johnson Matthey also offers KATAL-COJM 83-3X. This product delivers a much lower level methanol by-product for plants where this is an issue; it is achieved by incorporating a low level of alkali metal oxides into the catalyst micro-struc-ture. However, these alkaline promoters also have a strong affinity for trace chlorides in the feed gas resulting in even greater retention of chloride.

4. Impact of poisons on catalyst life The poisons present at the inlet to the LTS catalyst

clearly have a significant impact on the catalyst life, and the extent of this impact depends on the level of poisons present. With very high levels of contami-nants, it is typical to see lives between 3 and 5 years, and extremely high levels of sulphur and chlorides at the top of the catalyst bed. By contrast, beds with much lower levels of poisons can give twice the cat-alyst life, and on discharge the top of the catalyst bed contains lower levels of poisons.

Figure 6 shows the levels of poisons found in dis-charged samples of KATALCOJM 83-3 products. However it should be noted that contaminant lev-els are difficult to monitor in the wet process gas streams. Changes in feedstock source, age of the pu-rification system, maintenance of air filter systems, to name a few, can all contribute to these levels of sulphur and chloride poisons.

Figure 5: E l e c t r o n microsco-py study of chloride po isoned LTS cata-lyst

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Studies & Research In addition to good poisoning resistance, KATAL-

COJM 83-3 catalysts are strong enough to withstand plant upsets such as steam condensation or water impingement ensuring that pressure drop increase across the catalyst bed is kept to a minimum com-pared to competitor products.

Figure 6: inlet poisons and poison retention of KATALCOJM 83-3 catalysts

5. Catalyst choices to protect against poisoning Since all plants see deactivation as a result of poi-

soning, what choices are there for low temperature shift catalysts? The main options are choosing be-tween a catalyst that requires a specialty guard layer to protect the catalyst itself from chloride poisoning, and a catalyst that is self-guarding for chloride, for example KATALCOJM 83-3 series. Table 1 com-pares the differences between a catalyst loading de-sign that requires a guard, and one that does not.

Table 1: Comparison of LTS catalyst loading options

One of the disadvantages of installing a specialty guard layer is that these products are generally poor shift catalysts and take up as much as 15% of the available catalyst bed volume. The specialty guard is designed to retain chlorides, but has low levels of sulphur retention and is therefore not an effective sulphur guard. The most effective way to understand the differences between an LTS design that requires a catalyst guard and one that is self-guarding instead is to look at data from actual operating plants. For example, the data presented in Case Study 2 below indicates that, while the speciality guard product has good chloride retention, KATALCOJM 83-3 series catalysts provide similar chloride protection with the

added benefits of better sulphur retention and excel-lent shift activity throughout the bed, not just in a guard layer.

Case studies 5.1. Case study 1 This first case study is a 1000 TPD ammonia plant

located in Asia Pacific. The plant has experience of very high levels of chloride poisoning, and had ad-dressed this by installing a full bed of specialty chlo-ride guard material in the first of two LTS catalyst beds which operate in series.

Sample baskets of KATALCOJM 83-3X were in-stalled on top of a full bed of a competitive specialty guard. These sample baskets were left in place for 11 months, after which time they were removed and analysed. The analysis results are shown in Figure 7.

Figure 7: KATALCOJM 83-3X chloride retention

Figure 6 earlier in this paper demonstrated that 500ppm chloride levels on LTS catalysts are measured on spent LTS catalysts where the performance result-ed in 3-5 year lives. However the analysis of the cata-lysts from the sample basket contained over 4500ppm of chloride, demonstrating that KATALCOJM 83-3X continues to act as a chloride guard well after the cata-lyst is no longer active for the shift reaction.

These results clearly indicate that the self-guard-ing nature of the KATALCOJM 83-3 series LTS products for chlorides rivals the levels on specialty guards designed for chloride retention.

5.2. Case study 2 This case study directly compares the performance

of KATALCOJM 83-3/83-3X with a competitive catalyst loading that included a guard catalyst. This site has two ammonia plants operating side by side with the same gas feed, air source etc. into the plants.

Figure 8 shows the CO slip versus time for both plants. Whilst the competitive charge with its spe-cialty guard layer had to be replaced after just 4 years on line the KATALCOJM 83-3 series products gave nearly 50% additional life at 5.5 years.

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Figure 8: CO slip versus time for competitive and KATALCOJM catalyst charges

When each of these catalyst beds were discharged (2 years apart) samples were taken from different depths in the catalyst bed and the samples sent off for analysis. The results of that analysis are shown in Figures 9 and 10. Figure 9 shows the chloride pick up profile throughout the catalyst bed for the com-petitive product with the specialty guard layer and the KATALCOJM products.

Whilst the competitive specialty guard material picked up a significant quantity of chloride, the rest of the bed picked up very little chloride and the bed was no longer active.

In contrast, the results demonstrate that the KATALCOJM 83-3 products were able to operate with much higher levels of chloride on the catalyst itself before the bed was ultimately poisoned. Not only this, for the same volumes of catalyst it gave an additional 1.5 years of service. These results clearly indicate the self-guarding nature of the KATALCO-JM 83-3 series LTS products for chlorides providing poison retention throughout the catalysts bed.

Figure 10: Sulphur profiles through the discharged catalyst beds

Figure 10 shows similar data, but this time it illus-trates the sulphur profiles through the catalyst beds. The competitive specialty guard contained very lit-

tle sulphur, as did the rest of the catalyst bed. This meant that the catalyst was rendered inactive rela-tively quickly by the sulphur that it picked up, and that it did not retain significant quantities of sulphur. This was also demonstrated by the way in which the temperature profile moved through the catalyst bed during its operating life.

Unlike the competitive material with its guard bed, KATALCOJM 83-3 series products retain a very high level of sulphur, again illustrating the products’ self-guarding nature.

Due to the superior performance of the KATAL-COJM 83-3 series products, the customer replaced the competitive products with Johnson Matthey catalysts during the plant turnaround. To date this charge has given three years of trouble free oper-ation and is not expected to be replaced until it is

seven years old. 5.3. Additional plant performance data Case studies one and two are examples from two

operating plants, which clearly demonstrate the improved performance in poisons resistance for KATALCOJM 83-3 series products. Johnson Mat-they has many more similar examples and some of these are illustrated in Figure 11. This figure shows the achieved lives of another 20 plants; in each case, KATALCOJM 83-3 series self-guarding catalysts replaced a competitive product that also required a specialty guard layer installation. As you can see in each of these cases the KATALCOJM 83-3 se-ries catalysts gave significantly longer lives. In al-most all of these cases the achieved life was at least 50% more, and on average the life extension was 24 months.

Figure 11: Life extension achieved by installing KATALCOJM 83-3 series catalysts

6.The value of life extension There are various different ways in which an am-

monia or hydrogen plant can take advantage of the benefits delivered by a self-guarding LTS catalyst.

• Short loading catalyst beds As KATALCOJM 83-3 series products give longer operating lives,

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Studies & Research some operators choose to short load their LTS ves-

sels. This allows the life of the catalyst to fit in with the turnaround time for other catalyst changes.

• Extending turnaround schedules Many of John-son Matthey’s catalyst customers now find that by installing KATALCOJM primary reforming, high temperature shift and low temperature shift catalysts that they are able to extend their turnaround sched-ules by an additional year. This delivers significant savings to a plant over its lifetime, based on the re-duced number of turnarounds required and the addi-tional production achieved by not shutting down as frequently.

• Protection against the unexpected Whilst all plant operators strive to ensure the best possible op-eration of their assets, things can and do happen that are unexpected and outside of normal operation. It is not uncommon for the LTS bed to see operation at temperatures below the gas dew point for short periods of time; equally plants can suffer from leak-ing heat exchangers. As the chloride compounds formed in both guard beds and self-guarding cata-lysts are water soluble, water will wash the chlorides down the catalyst bed. Clearly this is a significant issue if your catalyst has no resistance to chloride poisoning as the entire catalyst bed may need to be replaced resulting in an unplanned shutdown. With a self-guarding catalyst however, the catalyst retains activity after poisoning and will usually provide

References [1] J. Stell, I. Johnson and P. Broadhurst, “The operation of high, low and intermediate temperature shift

catalysts,” in 13th Annual International Tehnical Seminar for Hydrogen Plant Operations, Miami Lakes, 2005.

[2] L. Lloyd, “Low Temperature Carbon Monoxide Conversion,” ICI Catalysts Paper 39. [3] I. R. Barton, “Improved Selectivity of Low Temperature Shift Catalysts,” in AFA Technical Conference,

Tunis, 2000. [4] P. V. Broadhurst, F. E. Lynch and N. MacLeod, “The chemistry within your catalysts,” Nitrogen & Syn-

gas, no. 310, pp. 22-24, 2011. [5] I. Johnston, P. V. Broadhurst and C. Park, “Development of a kinetic model for methanol formation over

low temperature shift catalysts,” in Nitrogen 2006, Vienna, 2006. [6] F. E. Lynch and S. Appleton, “Water and your shift converter -hero or villian?,” in AIChE Safety in Am-

monia Plants and Related Facilities, Orlando, 2003. [7] P. V. Broadhurst, “Low and medium temperature shift operation,” in European Hydrogen Seminar, Is-

tanbul, 2010. [8] K. Chlapik, K. Mowbray and C. Park, “LTS Safe and Proven Recovery Strategies,” in AIChE Safety in

Ammonia Plants and Related Facilities, Chicago, 2012. [9] R. Anderson, P. Broadhurst, F. E. Lynch and C. Park, “The Chemistry within your Catalysts Part 3: Water

Gas Shift and Methanation,” Nitrogen & Syngas, vol. 312, p. 48 ff, 2011.

sufficient LTS activity to allow the plant to operate until a turnaround can be appropriately planned and managed.

7. Conclusions LTS catalyst formulations are a balance between

thermal stability (preventing copper crystals from sintering and reducing the active surface), poisons resistance (minimising the impact of sulphur and chloride poisons on the catalyst performance), se-lectivity (preventing methanol formation across the active copper component) and activity (ensuring that the catalyst can achieve the lowest possible CO slip). The types of research and development tech-niques used by Johnson Matthey in the development of their LTS catalysts have been discussed. This pa-per has also looked at one of the key catalyst prop-erties that impact on LTS catalyst life, efficiency and reliability, that of poisons resistance.

The difference between sulphur and chloride poi-soning of LTS catalysts has been considered, as has the impact of these poisons on catalyst life. Case studies then show how using a self-guarding LTS catalyst such as the KATALCOJM 83-3 series from Johnson Matthey instead of using a catalyst that requires specialty guard layer gives improved per-formance. It has also looked at how using KATAL-COJM 83-3 series catalysts can provide significant value to ammonia and hydrogen plant operators.

Issue 7450

Future Impact of Low Energy Prices on the Fertiliser Industry

Dr Evgenia Apostolopoulou Senior Consultant

IHS Chemical [email protected]

Energy prices plummeted to historical low lev-els in 2015; Brent Crude Oil fell by 47% year-on-year to $52/bbl, NG prices in West Europe dropped by 20% based on the Dutch NG bench-mark TTF, and electricity prices by 32% as in the same region. Low energy prices persisted in Q1 2016 when Brent Crude averaged $34 per barrel. In Q2 we are seeing a gradual recovery of oil prices on the back of lower US crude pro-duction - Brent at $44/bbl at the time of writing. IHS believes that crude prices will slowly rise with Brent averaging about $41/bbl for full year 2016 and $49/bbl in 2017 according to the lat-est April 2016 forecast by IHS that was done on the assumptions that a)US crude production will drop to lower levels in the coming months, b) no coordinated production cuts by the governments of OPEC/non-OPEC countries in the near term and c)global liquids demand remains relatively robust at 1.2 million barrels per day. Upside risk to this forecast is that non-OPEC, non-US crude production falls more rapidly than expected in response to lower prices. Conversely, factors such as higher than anticipated output from Iran and Libya or the US crude production proved to be more resilient than expected will put down-ward pressure on prices.Fertilisers, similar to other commodities, track

energy prices. In the N fertiliser area, prices for ammonia and urea (reference Black Sea FOB) retreated considerable in 2015 against the year before by 21 and 14% respectively. In addition to the low price energy environ-

ment, a supply glut was another significant fac-tor that put downwards pressure on prices. A main contributor to this was governmental pol-icy; the Chinese export tariff was cut and main-

tained at the low level of RMB80 per metric ton throughout 2015 and continuing for 2016. In 2015, no more export spikes were recorded but rather a steady flow of exports between 0.7-1.8 million metric tons per month. Introduction of VAT on fertilizers in September 2015 had min-imal impact on domestic Chinese demand. Re-garding exports, the effect was counterbalanced by the devaluation of the currency.N capacity expanded in 2015 with new plants

starting up in Algeria (Algeria Oman Fertilizer Co.), Saudi Arabia (SAFCO V), Egypt (MOP-CO), Russia (Ammonii), Indonesia (PT Pupuk Kalimantan) and the US (CFI, Donaldsonville). As for the near term, capacity growth will con-tinue with more ammonia/urea facilities coming on stream in 2016 in countries such as Bangla-desh (Shahjalal Fertilizer), Indonesia (PT Pu-puk Sriwidjaja), Malaysia (Petronas), Nigeria (Indorama), Russia (Acron - ammonia), Mexico (PEMEX-restart of idle capacity) and the US where plants are coming on line by CFI/OCI, LSB Industries, Dyno Nobel, JR Simplot and U.S Nitrogen (the latter four are standalone am-monia plants).While plant construction is on-going in the

US, high capital costs and low forecast product prices have hurt the chances of realisation of planned projects; some of them have complete-ly lost their momentum. For example CHS Inc. will not go ahead with its ammonia/urea/UAN plant at Spiritwood, ND and instead bought a stake in CFI and struck a supply agreement for up to 1.7 million metric tons of product per year. IFFCO in Canada, have also shelved their project in the Quebec area and BioNitrogen in the US who was planning several small urea plants around the country declared bankruptcy. Other prospective projects have struggled to get financing, for example Magnida, particularly since its largest investor, Egypt Kuwait Hold-ings backed out of the project due to the rising construction costs. Other planned projects such as Ohio Valley Resources, Northern Plains Ni-trogen have not progressed either. Conversely, Midwest Fertilizer secured financing and signed

Issue 74 51

Studies & Research the EPC contract in early 2016 and some play-ers have announced small scale ammonia plants such as Nebraska Nitrogen LLC and Grannus LLC and in recent weeks Investimus Foris announced that it will convert an idle biofu-els plant to produce ammonia at Pollock, LA. Planned ammonia standalone plants based on a hydrogen-synthesis process have also emerged; the Yara BASF JV (68:32) project at Freeport, TX and the Pallas Nitrogen in Pasadena. The former plant broke ground in July 2015 and will receive nitrogen and hydrogen from Prax-air Inc. via a long-term supply agreement while the latter will receive hydrogen by Air Products according to a recent company announcement. The hydrogen-based process significantly re-duce capital expenditures and maintenance compared to the traditional NG-based ammonia plant and according to Yara/BASF total capital investment for the 750 thousand metric tons per year ammonia plant the investment is estimated at $600 million. Consolidation is taking place in the fertilizer

business with the CFI/OCI and CVR Partners/Rentech M&A transactions being the most prominent. Moreover, mid-2015 CFI also ac-quired 50% equity interest in GrowHow UK Ltd making GrowHow a wholly owned subsidi-ary. It is likely that we will continue to see more consolidation in the nitrogen industry.On the demand side, economic woes and de-

valuation of currency in Brazil affected import demand that fell by 35% in 2015 year-on-year. Construction of the ammonia/urea plant at Tres Lagoas by Petrobras is suspended due to the re-cession and company issues. India imported record levels of urea in 2015,

estimated at about 9.3 million metric tons, and another 8-9 million metric tons are projected for 2016. Lower international prices have reduced the subsidy bill for imported urea in FY2015-16 and the budget allocation for FY 2016-17 is lower by 1%. The Indian government is pushing to reduce import demand and several projects that primarily involve revival of idle units have been on the cards since 2008 but little progress has been made due to difficulties mostly associ-ated with the availability and price of feedstock. With LNG world price formation 75% oil-in-dexed contracts and 25% gas-to-gas competi-

tion, Asian LNG prices plunged in 2015. Soft LNG prices and an outlook for LNG oversupply should help towards the expansion of the do-mestic urea capacity. As per the IHS view, the low-energy price

environment is going to sustain in the short to medium term and low energy prices general-ly mean soft commodity prices including fer-tilisers. Generally speaking, changes in crude oil have an immediate and significant impact on the cost structure of commodity chemicals. Since 2015, the overall profitability of the fer-tilizer industry has diminished as producers’ margins shrunk. The largest impact has been felt by producers who have historically enjoyed low NG prices, for example in the Middle East and since 2009 in North America. In 2015, we have also seen the Middle Eastern producers re-acting to a more competitive market and selling more aggressively in South American and Asian markets also taking advantage of freight rates at record-low levels. Producer margins compres-sion causes a change in capital project imple-mentation – planned projects can be delayed in coming into fruition, shelved or even cancelled and projects near the completion stage can ac-celerate in order to make up for the low prices by achieving higher production output. Howev-er, the latter has a minor impact on the Supply/Demand balance and overall, we expect that the rate of new capacity additions will slow down as new projects find it more difficult to achieve financial closure and the low oil price environ-ment affects investment decisions. The other is-sue is the increased price volatility that we have seen in recent years that makes investors more hesitant and cautious as well as the escalating construction costs that can suppress a project’s IRR. On the other hand, for producers whose feed-

stock costs are linked to crude oil (for example West and Central Europe), the oil price shock has minimum impact. Indeed, European pro-ducers enjoyed relatively healthy margins in 2015 and significantly better than in 2013-14 when operations were marred by high feedstock costs. In terms of downstream products, produc-tion of nitrates AN & CAN in Europe was more profitable per metric ton of N in comparison to ammonia and urea – a complete reverse of the

Issue 7452

situation prevailing in 2011 when urea was pro-viding the best returns.As it was previously mentioned, there has been

a degree of the fertilizer-industry restructuring in the US as well as in other countries; In Roma-nia, Interagro went into administration in 2016 after suspending production at the Slobozia and Turnu Magurele sites in mid-2015. In China, production costs for NG-based producers con-tinue to rise and we expect to see closures of capacity by 0.5-2.5 million metric tons urea per year in the short/medium term due to unfavor-able production economics and the governmen-tal initiative to rationalize the industry and close a number of small, inefficient and polluting plants. Coal-based producers will continue to be in an advantageous position particularly those utilizing advanced coal gasification technolo-gies and it is expected that non-anthracite coal fed ammonia to increase its capacity share in China from 21% in 2014 to 21% in 2020. Chi-nese exports will continue at a high rate led by overcapacity and low tariffs but the IHS forecast is for 12 million metric tons Chinese exports of urea in 2016, down by 1.7 million tons as com-pared to 2015 due to the increasingly challeng-ing conditions. Furthermore, Chinese exports will continue to primarily target Asian markets to maximize netbacks. Declining attractiveness of biofuels due to the

low price of crude oil will affect the largest al-ternative fuel producing countries which are the US and Brazil producing bioethanol from corn and sugarcane respectively and West Europe making biodiesel from edible oils and in turn, planted acreage for these crops can diminish af-fecting N fertiliser demand. It is worth mention-ing that in the US, as much as 40% of the corn crop can be used to make biofuels but the share of biofuels in agricultural production has be-come substantial only in the last seven years. It is currently estimated that 3-4% of land is allo-cated to crops for biofuels but biofuels account for only 1.5% of world oil consumption. Lower prices for agricultural commodities will

affect commodity-exporting countries particu-larly in the developing world (e.g. Brazil and other South American as well as Sub-Saharan African countries). This can have a negative im-pact on fertiliser demand. Specifically in Brazil,

low commodity prices will continue to hurt the country’s export revenue in 2016 as price for key Brazilian export commodities such as soy-beans and iron ore remain very low. IHS forecasts a stronger US dollar against the

euro and currencies in emerging markets includ-ing the Brazilian real and in general, apprecia-tion of the US dollar works against high com-modity prices. Commodity fertilizer levels in turn impact

specialty fertilizer producers who typically use commodity products as inputs though the exten-sion of the impact is less and with a time lag.End users of commodity fertilisers, either pro-

ducers of speciality fertilisers or farmers can find substitution opportunities as the relative prices of certain products change; for example we have seen some substitution of AN by urea in key European markets and this is likely to continue. And according to IHS Agriculture pro-jections, farm income is projected to be slightly higher in 2016 year-on-year as input costs such as fuel for vehicles and electricity for machinery are much lower and this can have a positive ef-fect on fertiliser demand. Overall, the short/medium term crude oil fore-

cast suggests a gradual increase in energy prices to 2019 but they should remain below the his-torical annual averages recorded in the years 2010-2014. Freight rates fell to 10-year histor-ical-lows in 2015 and for the future we expect them to track crude oil price developments. A weak N supply/demand balance when capaci-ty growth will continue to outpace demand, in conjunction to the impact from the energy pric-es indicates a tougher and more competitive en-vironment for producers in the next four years. We also expect to see producers looking to add value at downsteam value chain, for example enhancing their product portfolio and investi-gating opportunities for growth within the spe-cialty fertilisers business area more intensively. Certain players will look into building capacity in low-cost feedstock regions like Africa and Iran and others will seek to strengthen their po-sition in key markets such as Latin America and Southeast Asia through acquisitions.

Issue 74 53

Impact of Feedstock and Market Forceson Nitrogen Fertilizer Industry

Studies & Research

The growth of plants and crops which are ultimate-ly consumed by humans and animals depend primar-ily on three main macronutrients, namely nitrogen (N), phosphate (P2O5) and potassium (K). Micro-nutrients required for healthy crops include calcium (Ca), Magnesium (Mg) and sulphur (S) as well as other minor, albeit important to a healthy nutrition, compounds. The nutrients consumed by plants can be replenished through the application of fertilizers to the soil.

Nitrogen as one of the three main crop nutrients is essential in crop growth and has a critical role to play in the process of photosynthesis by which plants produce their own food from sunlight. Al-though individual crops require different nutrient ratios, nitrogen is applied to the soil in larger quan-

tities compared to the other two main nutrients. In fact, nitrogen is the nutrient, that crops require the most out of all essential plant macro- and micro-nu-trients.Global Main Nutrient Production, 2014

The invention of the Haber-Bosch process in 1909 in which ammonia, the building block of nitrogen fertilizers, was for the first time chemically synthe-sised from nitrogen in air and hydrogen in hydrocar-bons, enabled the manufacturing of chemical nitro-gen fertilizers in industrial scale and ensured that an increased amount of nitrogen could be applied to the soil to stimulate crop yields. As widely acknowl-edged, this was arguably one of the most important inventions of all time as it facilitated the population explosion experienced over the last 40 years, driving the world›s population from 3.7 billion in 1970 to 7.4 billion today. As the global population grows (predicted to exceed 9 billion by 2050, UN), so does the requirement for fertilizers in order to provide sustainable sources of food and thus form an essen-tial element to ensure the growth and survival of the human population.

Fertilizer consumption is therefore inherently driv-en by population growth with industrial scale pro-duction being paramount in maintaining and further increasing food production to the levels required to ensure that global population growth is not compro-mised.

Other secondary influences driving fertilizer con-sumption growth, include GDP growth, government policies on tariffs and subsidies and environmental implications of fertilizer use including biofuels.

Unsurprisingly, different regions are expected to show vast variations in population growth. Asia Pacific and Africa are expected to show a rapid in-

Dr Dimitrios DimitriouSenior Consultant, Nexant LtdNexant Energy and Chemicals

Advisory, London, UKTel:+442079501530

Email: [email protected]

Thomas HeinrichConsultant, Nexant Ltd

Nexant Energy and Chemicals Advisory, BahrainTel:+97317502963

Email: [email protected]

Nitrogen Fertilizers Overview and Consumption Drivers

Issue 7454

crease in population size, while in Western Europe and North America’s population is expected to re-main almost constant in the long term. Therefore, demand growth for food and hence fertilizers are ex-pected to be significantly higher in Asia Pacific and Africa (albeit from a low base), than in the West over the outlook period.

A growing population not only requires larger quantities of food but also more urbanized areas which result in a trade-off between the availabili-ty of agricultural and urban land, which ultimately leads to the necessity of increasing crop yields from existing arable fields. According to Food and Ag-ricultural Organization (FAO) availability of global agricultural land has been rather stagnant increasing from 4.2 billion hectares in 1970 to 4.8 billion hect-ares in 2014 (est.). Hence, fertilizer demand is not only a question of population but also availability and location of existing and new arable land.

With regards to production, in most producing re-gions, conventional ammonia technology is based on natural gas feedstock. China is the main excep-tion where hydrogen is sourced mainly from coal. Initially, ammonia plants were built in close prox-imity to large consumption centres such as North America, Europe and Asia. However, in more recent history, ammonia and downstream fertilizer plants have been largely built in regions where natural gas reserves are abundant and cheap (particularly in the Middle East) as means to monetize hydrocarbon re-serves, which in the case of associated gas its value just represents the recovery cost as an alternative against flaring and any associated environmental penalties.

The mismatch of population, arable land and feed-stock determines the location of production and con-sumption centres and underlines the prevailing trade flows of nitrogen fertilizers.Mismatch between population, feedstock and ara-ble land

Declining Fertilizer Prices and OversupplyThe fertilizer market has seen major developments

in the past decade. After years of high commodi-ty prices, fuelled by population, strong economic and consumption growth (particularly in Asia), the global economy has slowed down impacting some-what on consumption growth of basic commodities,

including fertilizers. The state of oversupply that the nitrogen market is currently facing is a result of continuous investment over the past few years on ni-trogen fertilizer plants in feedstock rich regions, at a point of time when oil and fertilizer prices have been record high, which made these investments very at-tractive. The later has however resulted in exces-sive fertilizer capacity being introduced around the world at rates higher than the growth of consump-tion, which in combination with the recent slide in crude oil prices to 12 year lows, which no one was really prepared for, has resulted in nitrogen fertilizer prices sliding to the lowest level since 2006.Historical Average Monthly Brent Crude Oil Price

Black Sea FOB Urea Prices

The combined effect of market oversupply and low fertilizer prices is an indirect result of slowing economic growth and a sharp increase in production to the level of oversupply. Furthermore, many of the global currencies have weakened against the US dollar leading to lower purchasing power of farmers/government funding availability in some developing nations. On the production side however, the strong US dollar has offset some of the profit reductions of fertilizer producers caused by lower commodity prices. Opportunities and Challenges in Fertilizer Industry

Issue 74 55

Studies & Research Lower nitrogen prices are especially felt by pro-ducers who have natural gas supply agreements in place in which the price of natural gas is fixed. This has been leading to the closing of the profitability gap between lowest and highest cost producer (cost curve becoming flatter).Indicative Urea Cost Curve in a low Oil Environment

Despite the apparent slow-down in investment, due to oversupply and low product prices, there are still a number of new fertilizer projects under way which are expected to come onstream within the next few years. The financing of most of these proj-ects has been committed before the price and market downturn started becoming apparent. These projects are concentrated mainly in Asia where the main fer-tilizer demand growth is located, in the US where the shale gas boom has led to very low natural gas prices and consequently a relative feedstock advan-tage compared to other regions, in the CIS where a glut of gas has encouraged Governments to think of alternatives monetisation options, in China where old and small anthracite based plants are gradually replaced by larger scale and efficient and cheaper subbituminous coal plants, and in Sub-Saharan Af-rican with a number of countries holding large gas reserves (eg. Mozambique, Angola, Nigeria, Gabon) showing interest in developing fertilizer projects.

The capacity developments in US in particular are expected to have a notable impact on trade flows as the planned fertilizer plants will help to reduce the country’s current urea supply deficit and displace imported volumes.

Another country that has been attracting much of the headlines lately is Iran, as it has the largest proven gas reserves globally and is geographically well placed to serve the growing Asian market for fertilizers. The recent lifting of economic sanctions against Iran has revived the interest in new fertiliz-er and petrochemical investments with a number of projects in development stage.

Global Urea Production and UtilizationThis additional capacity is expected to put more

strain on the international fertilizer market particu-larly during a time when China and India, two of the largest fertilizer consumers in the world, are in-

creasingly worried about the environmental impact of fertilizer over-application. Nexant projects glob-al operating rates to drop further over the next few years as the continued investment will add further to oversupply. Determinants of Fertilizer Prices

Regional nitrogen fertilizer prices are closely linked reflecting the cost of freight which ammonia or urea is shipped around the world. The distribu-tion of large-scale, export orientated production fa-cilities around the world ensures that regional prices do not diverge for any sustained period of time. In turn, global nitrogen fertilizer prices are strongly in-fluenced by the cost of production development of the so called “global laggard” producers (the region in which producers are at the end of the global cost curve) as well as complex and widespread market forces.

Global ammonia and urea prices can be considered to be driven by two key factors, cost of raw materials and the supply and demand balance of the market. These two drivers combine to derive the product price via the fundamental relationship of cost plus margin.Cost Driver

The cost of production of the global laggard produc-er typically sets the floor, under which global am-monia and urea prices typically don’t fall under for a sustained period of time as otherwise plants in this region would shut down which subsequently would limit supply and increase prices.

Issue 7456

The highest ammonia and urea cost region has var-ied over the past decade, switching between US and Western Europe and more recently China. These regions have exerted a strong influence on global ni-trogen fertilizer prices due to their “global laggard” status, market size and high levels of ammonia and urea imports in the case of US and Western Europe. However, in recent years, US natural gas prices have decoupled from oil due to the on-going shale gas boom and do not influence the global fertilizer pric-es any longer.

In the low oil environment the world is currently experiencing, Western Europe and China are there-fore the highest cost producers of nitrogen fertilizers (at the very end of the global cash cost curve) and thus the main price influencing regions for setting the floor for ammonia and urea prices for the fore-seeable future. As such, the recent decline in global energy prices which began in mid-2014 has triggered a correlated decline in natural gas prices and caused the nitrogen “floor price” to decline as well putting increasing pressure on global fertilizer prices.European Natural Gas to Ammonia Price Linkage

On the other hand, China has become the largest exporter of urea in the world which has also lead to significant pressure on international fertilizer prices.Market Driver

As previously mentioned, the absolute fertilizer price level is not only determined by the cost of pro-duction but also by the global (and to some extent regional) supply demand balance. Typically when

fertilizer demand is high compared to supply, pro-ducers can increase prices and potentially achieve higher margins (depending on how cost of produc-tion develops). In contrast, fertilizer prices face downward pressure in times of low demand relative to supply, like now. In recent years, there has been a vast amount of investment into green- and brown-field fertilizer projects. This was in part fuelled by a strong interest of investors in low feedstock cost regions such as the Middle East, Africa, parts of Asia and South America to monetize on the domestic nat-ural gas reserves. A large number of these plants have been built purely for export purposes increas-ing the amount of fertilizer available for internation-al trade dramatically. Furthermore, due to the devel-opments in the US shale oil and gas industry, which in part contributed to the low oil price environment that we are currently experiencing, a number of new fertilizer projects have been developed or are currently still under construction in this region, al-though some have been recently cancelled. Finally China, the largest fertilizer producer and consumer in the world, has also increased its domestic fertil-izer capacity dramatically with a number of plants currently in development. As a result net-capacity additions in the fertilizer industry have outpaced global demand increase which has put further pres-sure on global fertilizer prices. Until 2019, Nexant expects that approximately 50-55 million tons per year of capacity will be commissioned.Expected New Global Fertilizer Capacity to 2019

While it appears that the timing for investing into many of these projects is somewhat unfortunate, as fertilizer prices are on a downturn, there is a his-torically observed mismatch of the economics and investment cycles in the industry which causes de-mand being offset by accelerated increase in supply. During times of high fertilizer prices characterized by relatively high demand compared to supply, in-

Issue 74 57

Studies & Research dustry typically generates higher margins which leads to new investment decisions in low cost feed-stock regions.

Mismatch of Economic and Investment Cycles

Hence a classic commodity chemical cycle consists of investments during good times and under-invest-ment in poor times. Since green field projects can take typically take between 3-5 years to be realized there is always a certain element of anti-cyclicality between the economic and investment cycle. Once demand catches up with the current over-supply, fer-tilizer prices and margins are expected to see some upward pressure.

Under the current oversupply situation and low oil environment, most producers have seen a reduction in feedstock costs but margins also reduced influ-encing prices. However, traditional high margin pro-ducers (fixed or low cost feedstock) were hit harder by low prices, albeit still typically enjoy relatively high margins.

Global Urea Cash Cost Margins

A less apparent reason for the recent slump in urea prices is related to regulatory developments in Chi-na. Production and consumption of ammonia and urea in China has grown in importance over the past decade and now has a substantial impact on the global market. Given the size of the Chinese market and the potential of the country to increase global capacity noticeably even during the course of only a year fewer trade restrictions in China could have a strong impact on global trade flows. The effects of regulation on export tariffs have been evident in the last couple of years, when general export taxes lowered considerably leading to increasingly large

volumes of urea exported and significant pressure on international fertilizer prices. Hence, what the Chi-nese government decides with regards to import and export taxes in the country in the future is something that concerns the whole industry. Conclusions

The world is currently finding itself in a low energy environment caused in part by an increased avail-ability of hydrocarbon resources combined with relatively weak global economic growth prospects. The low oil prices have had a lowering effect on the cost of production for ammonia particularly in some of the global laggard regions. The cost of produc-tion of downstream products has consequently also decreased as many producers are back-integrated into ammonia production. This in turn has low-ered the fertilizer floor prices. At the same time the availability of fertilizers has increased sharply due to global capacity additions as a result of years of higher margins, interest from low feedstock cost re-gions to monetize its natural gas resources and high-er availability of shale gas in the US (resulting in low regional energy prices). As such, the mismatch between the economic and the investment cycle be-comes obvious. Given the large amount of addition-al capacity expected to come onstream in the near future a low price / margin environment is expected to continue. Advantages from lower raw material prices (in many regions) are hence offset by lower expected price environments. Countries in which raw material prices are fixed have however seen a proportionately larger decline in margins.

The increased fertilizer capacities in the US are ex-pected to alter trade flows somewhat as the US is ex-pected to become less dependent on fertilizer (urea) imports in the future. China’s and India’s fertilizer policies and in particular setting of export and im-port tariffs for the former and level of subsidies for the later, will also have a strong influence on global fertilizer trade and ultimately prices. In addition, Iran’s re-emergence and Africa’s potential is expect-ed to be the focus point in the fertilizer industry for the years to come.

In this environment of low margins producers could be looking out for opportunities elsewhere to new projects in the near future, such as improving operational efficiency and cost, downstream value chain optimisation and growth as well as mergers and acquisitions. Indeed, international conso-lida-tion and rationalization has already started becom-ing apparent in 2015.

Nexant believes that despite the current weak mar-ket conditions, opportunities in low value feedstock regions still exist such as in US, Africa, parts of the Middle East and the CIS. In the long run the feed-stock cost advantage that the low cost feedstock re-gions have will continue to lead to new investments, but not to the levels experienced in recent past.

Issue 7458

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Issue Number (74) January - April 2016 ( ددعلا 74 ليربأ - رياني ) 2016 ·...

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