Ammonia

SAO PAULO (ICIS)–The global petrochemicals downturn could potentially stretch to 2028, but the years-long crisis due to overcapacities may leave a lasting mark – lower for longer margins, according to a chemicals analyst at credit rating agency Fitch. Marcelo Pappiani, Fitch’s main analyst for Brazil’s petrochemicals, said that potentially lower spreads post-crisis, compared to the averages prior to the current downturn, could have deep financial implications for petrochemicals companies and their ability to borrow and/or invest. The analyst reminded how he started covering Brazil’s chemicals for Fitch in 2022 – at the time, the nascent downturn was expected to be a traditional downcycle lasting around two years, three at most. In an interview with ICIS in 2023, the analyst said the downturn could last to 2025. In another interview in 2024, he did not want to put an end date to what was already looking like a half-decade-long crisis, and warned that despite protectionist measures in Brazil, chemicals producers were far from being out of the woods. MARGINS LONG TERMFast forwarding to current times, Fitch is forecasting the downturn to last until 2028 as China’s relentless start-up of new capacities, while not having the domestic demand for them, will continue putting Chinese products in all corners of the world at very competitive prices. “We now expect the downcycle to last a bit longer, probably until 2028, because we are still seeing and probably will continue to see for a while some prices at the bottom. I have heard some industry players put the end to the downturn in 2030 – we will need to see, but indeed the end date for it has had to be pushed back several times already,” said Pappiani. “This is the most prolonged downcycle most companies have been through. And what we are trying to figure out here is, upon recovery, when spreads return to mid-cycle, are they going to be at the same level they were before?” The analyst went on to explain his theory by looking at a key financial metric in a company’s performance: the ratio earnings/debt. The higher the ratio, the more effort a company needs to focus on deleveraging; therefore, capital expenditure (capex) and other long-term productivity measures can suffer. “Post-crisis, are companies expecting to have the same levels of earnings and leverage than they were running before this turmoil? This is the million-dollar question. Those metrics will eventually recover from the current crisis-hit numbers, but I doubt it will be at the same levels as before. Some companies still think the market will recover to where it was: I don't seem to agree much, but let's see.” HOW TO DEAL WITH CHINAThe current downturn, closely linked to China’s state-driven economic policies, presents companies from market economies with many challenges they have not been able to overcome yet. The situation which has brought the petrochemicals industry to its knees is clear. China's state-supported companies are just producing for the sake of employment and social stability – so the system does not feel threatened – over profitability, which is what drives competitors in most other countries.  "The market is always saying about how companies need to rationalize – shut down plants that are not profitable and the likes. But what's rational for us here in the West might not be rational for people in China, where they are more concerned about employment, for instance,” said Pappiani. "But the point is that the amount of rationalization we have already seen hasn't been enough to compensate for this oversupply. Meanwhile, domestically, the Chinese government doesn't seem to be concerned too concerned today about that [high levels of indebtedness and the burden that will put on future generations of Chinese citizens].” Pappiani went on to say that long term, the petrochemicals sector will eventually balance out simply because the world’s growing population will continue devouring plastics and petrochemicals-derived materials. “Despite the current overcapacity challenges, plastics and chemical products will remain fundamental to the global economy. Together with ammonia for agriculture, cement for construction, and crude oil, plastic resins rank among the world's most critical materials,” said the Fitch analyst. “This structural dependency on plastic materials continues growing and seems set to continue doing so, despite sustainability concerns and as environmental considerations gain prominence." Interview article by Jonathan Lopez

18-Jun-2025

BARCELONA (ICIS)–Europe’s chemical distribution sector is bracing for the impact of multiple geopolitical and economic challenges, including the Israel/Iran conflict. All Iran’s monoethylene glycol (MEG), urea, ammonia and methanol facilities have been shut down For methanol this represents more than 9% of global capacity, for MEG it is 3% Brent crude spiked from $65/bb to almost $75/bbl, against backdrop of reports of attacks on gas fields and oil infrastructure If Iran closes the Strait of Hormuz this will severely disrupt oil and LNG markets Expect extended period of volatility and instability in the Middle East European distributors brace for a VUCA (volatile, uncertain, complex, ambiguous) world Prolonged period of poor demand looms, with no sign of an upturn Global overcapacity driven by China, subsequent wave of production closures across Europe both a threat and opportunity for distributors Suppliers and customers turn to distributors to help navigate impact of tariffs and geopolitical disruption In this Think Tank podcast, Will Beacham interviews Dorothee Arns, director general of the European Association of Chemical Distributors and Paul Hodges, chairman of New Normal Consulting. Click here to download the 2025 ICIS Top 100 Chemical Distributors listing Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson's ICIS blogs.

17-Jun-2025

LONDON (ICIS)–OCI Global has secured US regulatory clearance for the $2.05 billion sale of its methanol business to Methanex, representing the last approval needed for the deal to move forward, the Netherlands-based producer said on Thursday. Methanex had originally agreed to acquire the business in September 2024, encompassing OCI’s Us and European methanol production assets. The deal is expected to close on 27 June, subject to closing conditions, OCI said. Under the definitive agreement with OCI, the $2.05 billion purchase price will consist of $1.15 billion in cash, the issuance of 9.9 million common shares of Methanex valued at $450 million – based on a $45 per share price – and the assumption of $450 million in debt and leases. OCI is expected to become the second largest shareholder in Methanex following the transaction, owning about 13% of its shares. The company’s methanol arm operates a facility in Beaumont, Texas, with annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia, as well as s 50% interest in another Beaumont site co-run with Proman. The deal also includes a 1 million tonne/year methanol facility in Delfzijl, Netherlands, currently not in production due to unfavourable natural gas pricing, and OCI’s HyFuels business.

12-Jun-2025

MUMBAI (ICIS)–India is currently planning green hydrogen initiatives worth around Indian rupees (Rs) 2 trillion ($23 billion), which include tenders for 42,000 tonne/year green hydrogen production by domestic oil refineries. Indian Oil eyes Dec ’27 start-up for 10,000 tonne/year Panipat hydrogen unit Two green ammonia projects start construction in Odisha Pilot projects initiated for hydrogen-powered heavy vehicles “Tenders for the production of 42,000 tonne/year have been floated by the refineries while 128 more will be issued by state-owned refineries based on the outcome of those tenders,” Indian petroleum and natural gas minister Hardeep Singh Puri had said in a post on social media platform X on 6 June. As part of the initiative, nine research and development (R&D) or demo plants are under construction and four have been commissioned by state-owned Indian Oil Corp (IOC), Gail India Ltd, Hindustan Petroleum Corp Ltd (HPCL), and Bharat Petroleum Corp Ltd (BPCL), he added. IOC, which is currently building India's largest green hydrogen plant with a 10,000 tonne/year capacity at its Panipat Refinery Complex, expects to begin operations at the plant by December 2027, the company had said on 30 May. Once operational, the plant will “replace fossil-derived hydrogen in refinery operations, resulting in substantial reduction in carbon emissions”, IOC added. Separately, construction work has begun on two green hydrogen and green ammonia projects at the Gopalpur industrial park in the eastern Odisha state. Hygenco Green Energies Ltd plans to invest Rs40 billion to build a 1.1 million tonne/year green ammonia plant at Gopalpur in three phases. It expects to complete the first phase by 2027. UAE-based Ocior Energy, meanwhile, is building a 1 million tonne/year green hydrogen and green ammonia plant at the Gopalpur industrial park at a cost of Rs72 billion, Odisha’s state government announced. A 200,000 tonne/year plant will be built in the first phase of operations by 2028, and a much bigger 800,000 tonne/year unit will be completed by 2030 in the eastern Indian state, according to Ocior’s website. The Gopalpur Industrial Park will also house the ACME Green Hydrogen’s green ammonia project, as well as a 1,500 tonne/day green ammonia project being set up by the Avaada Group. Separately, in a bid to grow India’s green hydrogen infrastructure, the central government also aims to decarbonize its transport sector through the introduction of hydrogen-powered trucks and buses. The government expects to commission five pilot projects for running these hydrogen-powered vehicles by 2027, according to National Green Hydrogen Mission (NGHM) director Abhay Bakre. In March 2025, the government initiated these pilot projects with participation from private firms such as Tata Motors, Ashok Leyland, Reliance Industries Ltd (RIL) as well as state-owned IOC, HPCL and BPCL, among others. As part of the project, the pilot routes have been mapped out on 10 routes across the country with nine hydrogen refuelling stations. The government plans to deploy around 1,000 hydrogen-powered trucks and buses by 2030, NGHM’s Bakre said. The government expects to get “almost 50 trucks and buses running this year”, he said, adding that the numbers would increase further next year. While automakers such as Tata Motors, Ashok Leyland, Mahindra & Mahindra, Hyundai have announced plans to develop hydrogen-powered vehicles, companies such as RIL, BPCL, IOC plan to create green hydrogen refuelling infrastructure. Launched in 2023, NGHM with an initial allocation of $2.4 billion, targets to have a minimum hydrogen production capacity of 5 million tonne/year by 2030. Since 2023, the government has allocated 862,000 tonne/year production capacity to 19 companies. ($1 = Rs85.60) Focus article by Priya Jestin

11-Jun-2025

LONDON (ICIS)–InterContinental Energy (ICE), developer of the world’s largest planned hydrogen project, could cut the premium of renewable ammonia over carbon-price-adjusted grey ammonia by more than 50%, ICIS data shows. Speaking to ICIS at the World Hydrogen Summit 2025 in Rotterdam, the Netherlands, ICE co-founder and chief executive officer Alexander Tancock explained to ICIS that the company’s large-scale hydrogen projects could produce hydrogen at $3/kg or ammonia at $650/ton. ICE projects are some of the largest renewable energy and hydrogen projects on earth. The company is developing three projects, two in Australia – Australian Renewable Energy Hub (AREH) and Western Green Energy Hub (WGEH) – and one in Oman called Green Energy Oman (GEO). The combined potential hydrogen output from all three projects, once built, would be 8.4 million tons of hydrogen per annum (MTPA), 0.5MTPA more than total hydrogen consumption combined across the EU 27, the UK, Iceland, Liechtenstein, Norway and Switzerland in 2023, according to the Clean Hydrogen Observatory. CUTTING THE GREEN PREMIUM WITH LOW-COST AMMONIA Taking into account freight costs for Australia to Germany of $155/ton, sourced by ICIS on 28 May, ICE $650/ton renewable ammonia could theoretically land in Europe with a delivered cost of $805/ton. Comparatively, ICIS assessed its carbon-adjusted ammonia (the emissions from grey ammonia are covered by the carbon price) into north-west Europe price at $524/ton on 22 May. The resultant premium of the renewable ammonia production from ICE’s future projects over carbon-adjusted ammonia based on today’s spot market would be $281/ton. Tancock told ICIS that the company intends to produce first molecules by 2032, meaning the premium is likely to change over the next seven years as the ammonia sector adapts to the energy transition – and the EU carbon price potentially rises. However, considering ICE’s renewable ammonia against alternative sources already discussed in the market, the company’s projections offer market participants a new look at the premium sustainable projects could hold as the market develops. Comparatively, in July 2024 H2Global announced the winner of its pilot auction, where Fertiglobe bid a delivered price of renewable ammonia of €1000/ton ($1130/ton). The German H2Global program procures international volumes of hydrogen or hydrogen derivatives with the ambition of re-selling them on the European market. Hintco, the coordinator of H2Global, noted at the time that it anticipates prices to be lower in the future due to supply-chain efficiencies and scaling of the hydrogen market. Fertiglobe deliveries are guaranteed from 2028, around four years ahead of when ICE could produce its first molecules. ACHIEVING LOW COSTS Although Tancock explained that the ammonia production would likely serve the Asian market, the market information is nonetheless a sign of potential cost reductions. Tancock explained several key components behind the projects that ICE is developing which supports lower-cost hydrogen and ammonia. When selecting a location, Tancock said that it would ideally have “lots of wind, lots of sun…ideally wind at night, sunny during the day, because that would then give you a much higher capacity factor… We looked for political stability, a track record of delivering huge infrastructure projects, finance, proximity to markets…the Middle East and Australia [are] markets where all of that comes together”. He said that there are other locations where these things come together, but ICE chose to focus on Australia and the Middle East. “If you look [at] how long it takes to permit a project in Australia, it’s five-to-seven years…Europe, it can be even longer, US as well.” Timing is another key element to reducing costs. “Any large project takes a really long time because of permitting process, design process. The other thing is, there’s a real decline in the cost curve right now of equipment, whether it’s wind, solar or electrolysers.” Tancock believes that the cost curve is slowing for wind and in solar, but that “it’s still quite steep in electrolysers”. Therefore “the ideal time to start bringing on really large projects will be the 2030s, because if you bring them on too early, you’re sort of locked in quite a high cost base”. ICE aims to bring its electricity-generating capacity online ahead of its electrolysers. Tancock explained that ICE will try to sell electricity to local offtakers and that “there should be some announcements later this year about [selling the projects’ power supply]” as two of them are located near to industry, providing energy-intensive offtakers. Another key component of lower-cost hydrogen and ammonia supply is the ICE patented P2(H2)Node system. The ICE nodes operate on the basis of co-locating electrolysis plants with wind and solar, removing the need to either connect to or build electricity transmission lines, and also through removing any losses that come as a result of using high-voltage lines. Reduced infrastructure due to co-location and reduced need for electricity transmission systems account for a 10% reduction in capital expenditure and a 10% increase in efficiency. READY DEMAND AND OFFTAKE STRUCTURES ICE intends to deliver its first electrons before the end of the decade and first molecules potentially in 2032, Tancock said. Supporting such timelines is the clear identification of demand and offtakers. For its ammonia, ICE is considering selling from its WGEH project into markets such as Korea, Japan, Singapore and China, where Tancock noted shipping as a potential offtake sector. However, some of the primary offtake will be local to the projects themselves. “If you look at our two projects in Australia, the northern project is sitting in the Pilbara, which is the world’s biggest iron ore producer. And just to put statistics on that, 800 million tons a year come out of the Pilbara. If we turned all 26GW [of our project’s capacity] into green iron, we would [cover] 4-5% of that…You would need about 600GW to decarbonize the Pilbara.” Similarly, for ICE’s project in Oman, Tancock explained the proximity to Europe as a benefit, but expanded to say that “Oman is currently…a trans-shipment location for iron ore. So, they import iron ore and turn [it] into pellets, which then get exported,” he said. Oman is currently seeking to decarbonize its export iron pellets, which the ICE GEO project could support and sell into. Nonetheless, Tancock noted that offtake is still the key issue for the development of projects. “The technical aspects all bring challenges, but they’re solvable. In that sense, it’s really questions about offtake,” he said. “So it’s about bringing the costs of our energy down, and then discussing with strategic offtakers who are looking to offtake in the 2030s and beyond.” ICE is currently in discussion with potential offtakers, Tancock explained, stating that on the molecule side “we’ll be signing those in 2027, 2028, so we’re working towards those offtakes at the moment”. Project developers speaking to ICIS regularly consider both the duration of offtake agreements and the total percentage of the project’s output that they would sign under a long-term deal. For ICE, Tancock stated that its projects’ output would need to be entirely contracted. “In the moment, I can’t see us doing much merchant. Now, you know, some people will say ‘oh we could do 80% contracted, 20% merchant,’ [but] all [of] that [is] to be seen…But I would anticipate it’ll be 100% allocated.” When discussing duration, Tancock said that the ideal would be “very long term” but that it’s unlikely to be achievable at the moment, although “those are conversations that are ongoing”. Reflecting on contracting, Tancock explained that he believed there is a role for governments to support. “You will see governments come in a little bit to help facilitate some of these earlier offtakers.” “They did it for LNG, they did it for [nuclear power]. They’ve done it for renewables. They’ve done it for oil and gas. So I think you will see that,” he said. “The first LNG shipments were all backed by very long-term offtakes…20-year offtakes.” GOVERNMENT MANDATES Expanding on the role of governments, Tancock highlighted that obligations for renewable or sustainable products were the right direction for the market to go. Discussing renewable energy, Tancock said that this was driven by government demand, penalties etc. However, Tancock noted that “the harder part we have with molecules is molecules tend to be traded a lot…The molecules come from here and they’re there. So that’s the trickier part we’re facing now when we’re trying to introduce green molecules…how do you, on an intra-regional and intercontinental level, manage that flow? Because if the benefits are flowing through to Oman, why would the German taxpayer keep paying?” As a solution, Tancock drew from recent successes with the International Maritime Organisation (IMO), stating “this [the IMO] is a global regulator who’s now put a global tax [on its stakeholders]”, meaning “no country pays, and no country suffers more than anyone else”. For hydrogen and ammonia, “things are happening,” Tancock said, such as the development of green corridors between different countries. “Until we get that, it’s very difficult to see sustained demand in some sectors…IMO is game changing. I think the IMO will show, is showing, that it can be done, but it will take now coordination,” Tancock said.

02-Jun-2025

HOUSTON (ICIS)–The US can maintain nearly all the plastic and chemical tariffs it imposed this year after an appeals court granted on Thursday the government's request to stay the judgment of a lower court. The stay will remain in place while the case is under consideration by the US Court of Appeals for the Federal Circuit. Earlier, the US lost a judgment over its tariffs in the US Court of International Trade. That lower court ruled that the president exceeded its authority when it imposed tariffs under the International Emergency Economic Powers Act (IEEPA). These IEEPA tariffs included nearly all of the duties that the US imposed in 2025 on imports of commodity plastics and chemicals. Had the appeals court rejected the government's request for a stay, then the US would have had 10 calendar days to withdraw the tariffs it imposed under IEEPA. The tariffs covered by the ruling include the following: The 10% baseline tariffs against most of the world that the US issued during its so-called Liberation Day event on 2 April. These include the reciprocal tariffs that were later paused. The US issued the tariffs under Executive Order 14257, which intended to address the nation's trade deficit. The tariffs that the US initially imposed on imports from Canada under Executive Order 14193. These were intended to address drug smuggling. The US later limited the scope of these tariffs to cover imported goods that do not comply with the nations' trade agreement, known as the US-Mexico-Canada Agreement (USMCA). The tariffs that the US initially imposed on imports from Mexico under Executive Order 14194. These were intended to address illegal immigration and drug smuggling. Like the Canadian tariffs, these were later limited to cover imported goods that did not comply with the USMCA. The 20% tariffs that the US imposed on imports from China under Executive Order 14195, which was intended to address drug smuggling. Because the appeals court granted the government's request for a stay, the US can maintain the IEEPA tariffs. The ruling did not cover sectoral tariffs imposed on specific products like steel, aluminium and auto parts, and it does not cover the duties that the US imposed on Chinese imports during the first term of US President Donald Trump. IMPLICATIONS OF THE RULINGIf the ruling is upheld by the higher courts, it could bring some imports of plastics and chemicals back to the US while lowering costs of other products. While the US has large surpluses in many plastics and chemicals, it still imports several key commodities. US states that border Canada import large amounts of polyethylene (PE) and other plastics from that country because it is closer than the nation's chemical hubs along the Gulf Coast. Other significant imports include base oils, ammonia, polyethylene terephthalate (PET), methylene diphenyl diisocyanate (MDI), methanol and aromatics such as benzene, toluene and mixed xylenes (MX). RULING COULD REDIRECT CHINESE EXPORTS OF PLASTIC PRODUCTSThe IEEPA tariffs of the US caused countries to redirect exports of plastics and chemicals to other markets, particularly to Europe. The result depressed prices for those plastics and chemicals. If the ruling holds, some of those exports could return to the US and reduce the quantity of exports arriving in Europe. The IEEPA tariffs had a similar effect on the plastic products exports by China. Those exports were redirected to other countries, especially southeast Asia. These redirected shipments flooded those countries with plastic goods, displacing local products and lowering domestic demand for the plastics used to make those products. If the ruling is restored by higher courts, then it could direct many of those shipments back to the US, although they would unlikely affect shipments of auto parts. Those shipments are covered by the sectoral tariffs, and the court ruling did not void those tariffs. RULING REMOVES BASIS FOR RETALIATORY TARIFFS AGAINST US PLASTICS, CHEMSChina had already imposed blanket tariffs in retaliation to the IEEPA tariffs the US imposed on its exports. China unofficially granted waivers for US imports of ethane and PE, but those for liquefied petroleum gas (LPG) were still covered by the duty. China relies on such imports as feedstock for its large fleet of propane dehydrogenation (PDH) units, which produce on-purpose propylene. If upheld, the ruling could restore many of those exports and improve propylene margins for those PDH units. The EU was preparing to impose retaliatory tariffs on exports of nearly every major commodity plastic from the US. Other proposals would cover EU imports of oleochemicals, tall oil, caustic soda and surfactants from the US. Canada also prepared a list of retaliatory tariffs that covered US imports of PE, polypropylene (PP) and other plastics, chemicals and fertilizers. If the ruling holds, it would remove the basis for the proposed tariffs of Canada and the EU as well as the existing ones already imposed by China. RULING WOULD NOT ELIMINATE THREAT OF FUTURE TARIFFSEven if the higher courts uphold the ruling and bars tariffs under IEEPA, the US has other means to impose duties that are outside of the bounds of the ruling. Section 122 of the Trade Act of 1974. Such tariffs would be limited to 15%, could last for 150 days and address balance of payment deficits. Tariffs imposed under the following statutes would require federal investigations, which could delay them by several months. Section 338 of the Tariff Act of 1930. The president can impose tariffs of up to 50% against countries that discriminate against US commerce. Section 301 of the Trade Act of 1974, which addresses unfair trade practices. This was the basis on the tariffs imposed on many Chinese imports during the peak of the trade war between the two countries. Section 232 of the Trade Expansion Act of 1962, which addresses imports with implications for national security. Trump used this provision to impose tariffs on steel and aluminum. The US has started Section 232 on the following imports: Pharmaceutical and active pharmaceutical ingredient (APIs) – Section 232 Semiconductors and semiconductor manufacturing equipment – Section 232 Medium and heavy-duty trucks, parts – Section 232 Critical minerals – Section 232 Copper – Section 232 Timber and lumber – Section 232 Commercial aircraft and jet engines – Section 232 Ship-to-shore cranes assembled in China or made with parts from China – Section 301 Shipbuilding – Section 301 The case number for the appeal is 2025-1812. The original lawsuit was filed in the US Court of International Trade by the plaintiffs VOS Selections, Genova Pipe, Microkits, FishUSA and Terry Precision Cycling. The case number is 25-cv-00066. Thumbnail Photo: A container ship, which transports goods overseas. (Image by Costfoto/NurPhoto/Shutterstock) Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy

29-May-2025

SAO PAULO (ICIS)–Brazil’s state-owned energy major Petrobras and chemicals producer Unigel have finally signed an agreement to end contractual disputes related to the two fertilizers plants in the country’s north which had been leased to Unigel. Late on 22 May, the companies said the two fertilizers plants in the states of Bahia and Sergipe (northeast) would thus return to Petrobras’ portfolio. The agreement must still be ratified by Brazil’s Arbitral Tribunal. “The agreement provides for the reinstatement of Petrobras' possession of the fertilizer plants (FAFENs) in Bahia and Sergipe, and the resumption of operations by Petrobras through a bidding process for the contracting of operation and maintenance services, in compliance with applicable governance practices and internal procedures,” said Petrobras. “Petrobras aims to resume activities in the fertilizer segment to create value through the production and commercialization of nitrogen-based products, while aligning with the oil and natural gas production chain and the energy transition.” Meanwhile, Unigel said the agreement represented the “definitive resolution of the contractual disputes” and litigation existing between the companies due to disagreements about the lease for the two plants. The deal represents the withdrawal of the company from the fertilizers sector altogether. The Camacari plant in Bahia state can produce 475,000 tonnes/year of ammonia and 475,000 tonnes/year of urea. The plant in Laranjeiras, Sergipe, can produce 650,000 tonnes/year of urea, 450,000 tonnes/year of ammonia and 320,000 tonnes/year of ammonium sulphate (AS). FAILED FERTILIZERS ADVENTURE The agreement puts an end to the 10-year lease for the plants signed by Unigel and Petrobras in 2019. While successful at first, as fertilizers prices shot up immediately after the first wave of the COVID-19 pandemic, prices started to fall in 2022 though while prices for natural gas rose sharply. In 2024, Unigel idled the two plants as high prices for gas and low selling prices made operations unprofitable, it said. Along the way, Petrobras accused Unigel of not fulfilling the terms and conditions of what they had agreed. Moreover, from 2022, woes at Unigel’s petrochemicals divisions – mostly producing styrenics – added to those in fertilizers. By the end of 2023, the company was forced to enter a debt restructuring process from which it only emerged in 2024. Earlier in May, Unigel presented its first comprehensive quarterly financial metrics since 2023, when it entered the restructuring process. Brazil’s financial regulations provide for such a provision for companies in financial distress. While it posted small earnings before interest, taxes, depreciation, and amortization (EBITDA), the producer continued haemorrhaging money in the first quarter, with sales falling year on year and posting a net loss of Brazilian reais (R) 209 million ($37 million). ($1 = R5.71)

23-May-2025

LONDON (ICIS)–Relatively stable demand and evolving global supply dynamics are expected in European ammonia and acrylonitrile (ACN) markets in 2025. In this latest podcast, global ammonia editor Sylvia Traganida and Europe ACN editor Nazif Nazmul share the latest developments and expectations for what lies ahead. Ammonia players are expecting European demand from the nitrates market to pick up soon Availability is due to tighten with scheduled turnarounds in Saudi Arabia and Indonesia Ammonia prices globally are softening due to a lack of major demand Geopolitics-led macroeconomic challenges dampen prospects of ACN derivatives demand resurgence Balanced-to-long ACN supply dynamics anticipated to endure

20-May-2025

SINGAPORE (ICIS)–Saudi energy and chemical giant Saudi Aramco has signed 34 Memoranda of Understanding (MoUs) and agreements potentially worth about $90 billion in total, with major US companies. The deals cover a range of fields, including liquefied natural gas (LNG), fuels, chemicals, emission-reduction technologies, artificial intelligence (AI) and other digital solutions, manufacturing, asset management, short-term cash investments, and procurement of materials, equipment, and services, the company said on 14 May. “Our US-related activities have evolved over the decades, and now include multi-disciplinary R&D, the Motiva refinery in Port Arthur, start-up investments, potential collaborations in LNG, and ongoing procurement,” Saudi Aramco president and CEO Amin Nasser said. “As Aramco pursues an ambitious value-driven growth strategy, we believe that aligning with world-class partners supports further development of our operations, strategic diversification of our portfolio, industrial innovation, and ongoing capability development within the Kingdom,” he added. The MoUs and agreements signed by Aramco and its Aramco Group Companies are as follows: Downstream Honeywell UOP: MoU related to technology licensing for an aromatics project. Motiva: MoU related to an aromatics project in Port Arthur, subject to a final investment decision. Afton Chemical: MoUs related to development and supply of chemical fuel additives in pipelines and retail fuel offerings. ExxonMobil: MoU related to evaluating a significant upgrade to the SAMREF (Saudi Aramco Mobil Refinery Company) refinery and expanding the facility into a world-class integrated petrochemical complex. Upstream Sempra Infrastructure: MoU related to previously announced HOA (head of agreement) regarding LNG equity and offtake stake in Port Arthur LNG 2. Woodside Energy: Collaboration Agreement to explore global opportunities, including an equity interest and LNG offtake from the Louisiana LNG project. Additionally, both companies are exploring opportunities for a potential collaboration in lower-carbon ammonia. NextDecade: Final Agreement to purchase 1.2 million tonnes per annum of LNG for a 20-year term from Train 4 of the Rio Grande LNG Facility, subject to certain conditions, including a positive final investment decision of Train 4. Technology & innovation Amazon/AWS (Amazon Web Services): non-binding Strategic Framework agreement related to collaboration on digital transformation and lower-carbon initiatives. NVIDIA: MoU related to developing advanced Industrial AI computing infrastructure, establishing an AI Hub and AI Enterprise platforms, an Engineering and Robotics Center of Excellence, training and upskilling, and collaborating with NVIDIA’s startup ecosystem. Qualcomm: MoU with Aramco Digital that aims to explore entry into a strategic collaboration that will focus on key digital transformation use cases, leveraging Aramco Digital’s 450 megahertz (MHz) 5G industrial network to connect intelligent edge devices with on-device AI capabilities, including smartphones, rugged industrial devices, robots, drones, cameras, sensors, and other IoT devices. Technical Services Procured Materials and Services: MoUs were signed to reflect the existing relationships with strategic US suppliers: SLB, Baker Hughes, McDermott, Halliburton, Nabors, Helmerich & Payne, Valaris, NESR (National Energy Services Reunited), Weatherford, Air Products, KBR, Flowserve, NOV, Emerson, GE Vernova, and Honeywell. These suppliers provide high-standard materials and professional services that help support Aramco’s projects and operations. Strategy & Corporate Development Guardian Glass: MoU to localize specialty glass manufacturing for architectural applications in the Kingdom of Saudi Arabia. Finance Wisayah asset management agreements with PIMCO (Pacific Investment Management Co), State Street Corporation, and Wellington. Agreements for short-term cash investments through a unified investment fund, the “Fund of One,” with BlackRock, Goldman Sachs, Morgan Stanley, and PIMCO.

15-May-2025

SAO PAULO (ICIS)–Brazilian President Luiz Inacio Lula da Silva had already got several investment deals in the bag midway through his five-day state visit to China – among others, Envision Group has committed $1.0 billion in Latin America’s largest economy to produce sugarcane-based sustainable aviation fuel (SAF). Green hydrogen, ammonia also within Envision plans for its ‘Net-Zero Industrial Park Energy production, energy storage on focus in Brazil, China firms talks, deals China’s insatiable hunger for grain sees Brazil as the counterweight to US supply SAF: LARGE SCALEWhile Envision Group’s announcement did not disclose any financial details about its Brazilian SAF plans, Brazil’s Planalto Presidential Palace press services said in a separate statement the firm’s investment would stand at around $1.0 billion. The announcement came soon after Lula met Envision’s management in Beijing. “Envision will develop Latin America's first Net-Zero Industrial Park in Brazil. Anchored by the production of SAF, the park will establish a complete green fuel value chain while advancing the development of green hydrogen and green ammonia,” said the company. “We will build Latin America’s first Net Zero Industrial Park in Brazil, creating a green ecosystem centered on SAF, green hydrogen, green ammonia, and renewable energy systems,” said Envision on a post on social media network LinkedIn. “By leveraging Brazil’s abundant renewable resources to drive sustainable growth and continuously innovating to lower the cost of green fuels, this collaboration [is to] contribute positively to Brazil's green transition and reindustrialization.” IT’S ALL (MOSTLY) ABOUT ENERGY The Brazilian president is due to meet “several companies” this week while in his visit to China, eyeing not only investments in Brazil but also partnerships with Brazilian institutions and the creation of research centers. The main objective for the latter would be to generate “technological development” in the energy sector, said the cabinet’s chief of staff, Rui Costa, who is travelling with the President. According to the Brazilian government, agreements with Chinese companies will involve projects in renewable energy – wind and solar energy but also some hybrid projects which will focus primarily on energy storage in Brazilian territory. “Brazil is one of the countries that has invested the most in wind and solar energy, but today it lacks the ability to store this energy,” said Costa. Apart from Envision, CGN Power also said it would invest Brazilian reais (R) 3.0 billion ($535 million) in a wind, solar, and energy storage hub. Lula also met the chairmen of automotive group GAC and the chairman of Windey Energy Technology Group. Within automotive, electric vehicles (EVs) major Great Motor Wall (GMW) said it would invest R6.0 billion in car manufacturing facilities in Brazil. Finally, another deal to highlight would be China’s semiconductor company Longsys commitment to invest R650 million to expand capacity at its Brazilian subsidiary Zilia, potentially helping avoid US tariffs on China-made chips. Meanwhile, Lula also found time in his first two days of state visit to meet with the CEO of Norinco, a conglomerate in the defense sector but whose reach expands also to infrastructure projects such highways, railways, hydroelectric plants, and water treatment plants. On May 13, Lula and China’s President Xi Jinping also had a one-on-one, although the pair had already met a few days earlier in Moscow. RELENTLESS GROWTH IN BILATERAL TRADE According to figures by the Brazilian cabinet, China has since 2009 been Brazil’s largest trading partner. Bilateral trade stood in 2023 at $157.5 billion, with Brazil exporting to China goods worth $104.3 billion and importing goods worth $53.1 billion from China. The growth in bilateral trade continued up to the first quarter of this year. According to the same information by Brazil’s cabinet, between January and March trade between Brazil and China stood at $38.8 billion – Brazil exported $19.8 billion and imported $19 billion. Among the main products exported by Brazil are crude petroleum oils, soybeans, and iron ore and concentrates. Brazil, in turn, mainly imports from China vessels, telecommunications equipment, electrical machinery and appliances, valves and thermionic tubes (valves). MOSCOW STOPOVER CRITICISMBefore landing in China over the weekend, Lula had visited Russia and took part on 10 May in Moscow’s Red Square military parade in which the country remembers the victory of the Soviet Union against Germany. Lula defended his presence in Red Square and argued that did not disqualify him as a potential peace mediator between Russia and Ukraine, the latter suffering a full-scale invasion by the former since 2022. Lula has always sought to develop Brazil’s soft power influence and as a global mediator. Since Russia invaded Ukraine in 2022, however, he has at times stated that Moscow and Kyiv bear equal responsibility for the war, calling them both to settle their differences through dialogue. Front page picture: Lula (left) meeting with Chinese officials in Beijing  Picture source: Brazil's Planalto presidential palace press services Insight by Jonathan Lopez ($1=R5.61)

14-May-2025