Page 14 - DMEA Week 03 2023
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DMEA                                         NEWS IN BRIEF                                             DMEA








                                                                                PETROCHEMICALS

                                                                                TAZIZ progresses with

                                                                                low-carbon ammonia
                                                                                shareholder deal


                                                                                Abu Dhabi Chemicals Derivatives Company
                                                                                RSC Ltd (TA’ZIZ) announced today the
                                                                                signing of a shareholder agreement with
                                                                                Fertiglobe, GS Energy Corporation (GS
                                                                                Energy) and Mitsui & Co., Ltd. (Mitsui), to
                                                                                develop an anticipated 1 million tons per
                                                                                annum low-carbon ammonia production
       interested parties.                 meeting at 10:00 on February 7, on Microsoft   facility at the TA’ZIZ Industrial Chemicals
         This could take the form of sharing in   Teams. Bidders wishing to attend must   Zone. This is a further step in the project’s
       production revenues, performance-based   inform the PetroSA representative by 10:00   journey towards a final investment decision
       contracting or equity participation. Proposals   on February 6, submitting names and contact   (FID).
       should preferably include part or full   details of attendees, to arrange the necessary   The facility will reinforce Abu Dhabi’s
       financing of the project.           access.                              position as a leader in low-carbon fuels
         PetroSA wants to receive a turnkey   ENGINEERING NEWS                  and capitalize on the growing demand
       solution from design to commissioning,                                   for low-carbon ammonia as a carrier fuel
       including funding and feedstock security;   Egypt’s fuel import bill     for clean hydrogen. The agreement builds
       however, other combinations which are fit                                on ADNOC’s deep experience in Carbon
       for purpose are encouraged and will also be   almost doubles             Capture, Utilization and Storage (CCUS),
       considered by PetroSA.                                                   Fertiglobe’s world-leading ammonia
         PetroSA says that, while it has a significant   Egypt’s fuel import bill almost doubled to   capabilities, and Mitsui and GS Energy’s
       level of GTL refinery engineering expertise,    $1.35bn in October 2022, growing by 89%   leading roles in industrial decarbonization. It
       subsurface expertise in geology, geophysics   compared to the same month the previous   follows several agreements signed by ADNOC
       and reservoir engineering disciplines, the   year as a result of western sanctions on   to explore hydrogen supply opportunities with
       preferred partner or partners will have an   Russian oil, gas and refined petroleum   customers in key demand centers including
       opportunity to interrogate the data  during the   products creating a structurally tight global   the Ministry of Economy, Trade and Industry
       business development process.       market, Amwal Al Ghad financial newspaper   of Japan, Japan’s Mitsui and Korea’s GS Energy.
         Applications must be submitted    reported.                              Khaleefa Yousef Al Mheiri, TA’ZIZ Acting
       electronically via email to tenders@petrosa.  The country’s crude oil import bill for   Chief Executive Officer, said: “This is a
       co.za on or before February 20 at 15:00.  October 2022 jumped by $149mn to $314mn   significant milestone in the development
         PetroSA will give preference to partners/  compared to October 2021, while its imports   of our low-carbon ammonia business and
       bidders who are State-owned or State-  of refined petroleum products more than   further strengthens the UAE’s hydrogen value
       supported oil and gas entities from oil and gas   doubled in value, increasing by 107% y/y to   proposition. We are building on the collective
       producing nations with access to feedstock   $862mn in October 2022. The rise in Egypt’s   strengths of our partners and shareholders to
       (oil, gas and other) and own financial   natural gas bill was more modest, growing   develop the first-of-its-kind large-scale low-
       resources to undertake the project; or entities   by $16mn to $122mn in October 2022 even   carbon ammonia project in the Middle East
       with proven and formalised relationships with   though imports increased in volume and   and North Africa.
       oil and gas producing nations; and or project   global spot prices shot up five-fold during   As we continue to grow our manufacturing
       developers who are in a position to finance the  the year, reflecting the fact that natural gas   base in Al Ruways Industrial City, the UAE
       development at risk up to financial investment   imports are tied to long-term contracts. Egypt   is well-placed to meet increasing global
       decision (FID) and will only recover   mostly imports natural gas from neighbouring  demand for chemicals while strengthening
       development costs at financial close; and or   Israel for re-export as Liquified Natural Gas   our position as a world-scale chemicals and
       proposals for a turnkey solution, including   (LNG).                     industrial hub and top destination for local
       development, funding (capital raised) and   According to petroleum ministry figures,   and international investment.â€
       sustainable feedstock supply.       Egypt produced 79.5mn tonnes of fuels   The shareholder agreement highlights the
         It is envisaged that, once the evaluation   in 2022, of which, 50.6mn tonnes were   exceptional international investor interest in
       is concluded, PetroSA will enter into   natural gas and 27.8mn were crude oil and   TA’ZIZ and follows ADNOC and Fertiglobe’s
       negotiations with one or more of the   condensates. Its natural gas exports increased   recent sales of low-carbon ammonia
       shortlisted bidders to conclude a partnership   to 8mn tonnes in 2022, up from 7mn tonnes   demonstration cargos to customers in Japan,
       agreement (or memorandum of agreement).  the previous year, more than doubling in value  Korea and Germany.
         PetroSA and the successful partner will   to $8.4bn in 2022, up from $3.5bn in 2021,   Low-carbon ammonia is made from
       jointly develop the project business case to   due to higher LNG export prices on global   hydrogen derived from natural gas feedstocks
       final investment decision for the reinstatement  markets.                and nitrogen, with the carbon dioxide
       of the refinery.                    BNE                                  produced captured and stored. Ammonia can
         PetroSA has scheduled a scope clarification                            be used as a low-carbon fuel for applications,



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