Page 14 - DMEA Week 03 2023
P. 14
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,
P14 www. NEWSBASE .com Week 03 19•January•2023