Ammonia
Overview
The ammonia market is undergoing a period of rapid and dramatic change. Conventional or ‘grey’ ammonia is traditionally produced almost exclusively for its nitrogen content. However, the urgent need to decarbonise the global economy and meet ambitious zero-carbon goals has opened up exciting new opportunities.
Ammonia has the potential to be the most cost-effective and practical ‘zero-carbon’ energy carrier in the form of hydrogen to the energy and fuels sectors. This has led to rapid growth of interest in clean ammonia and a flurry of new ‘green’ and ‘blue’ ammonia projects.
Argus has many decades of experience covering the ammonia market. We incorporate our multi-commodity market expertise in energy, marine fuels, the transition to net zero and hydrogen to provide existing market participants and new entrants with the full market narrative.
Our industry-leading price assessments, powerful data, vital analysis and robust outlooks will support you through:
- Ammonia price assessments (daily and weekly), some of which are basis for Argus ammonia futures contracts, Ammonia forward curve data and clean ammonia cost assessments and modelled weekly prices
- Short and medium to long-term forecasting, modelling and analysis of conventional and clean ammonia prices, supply, demand, trade and projects
- Bespoke consulting project support
Latest ammonia news
Browse the latest market moving news on the global ammonia industry.
Ice ammonia contract trades largest volume to date
Ice ammonia contract trades largest volume to date
London, 4 July (Argus) — The Ice Ammonia Outright- Argus Ammonia NWE cfr future contract (AOA) saw its largest trade to date on 3 July — a 3,000t August cargo clearing at $450/t cfr. The contract traded through FIS brokers and cleared through Ice. The AOA futures contract was launched on 16 January 2023 and settles against a calendar-month average of the daily Argus northwest Europe cfr duty free price. The Ice contract was first used in April 2023, when a 500t May cargo was sold at $385/t cfr, also brokered by FIS. The contract's block trade minimum threshold is five lots. One lot is the equivalent of 100t. By Ruth Sharpe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s KHI delivers LPG-fuelled LPG, NH3 carrier
Japan’s KHI delivers LPG-fuelled LPG, NH3 carrier
Tokyo, 28 June (Argus) — Japanese shipbuilder Kawasaki Heavy Industries (KHI) has delivered an LPG-fuelled LPG and ammonia carrier to domestic shipping firm Nippon Yusen Kaisha (NYK Line) and LPG importer Astomos. KHI announced on 28 June that it built the 86,700m³ very large gas carrier (VLGC) Gas Amethyst at its Sakaide shipyard in Kagawa prefecture, and has delivered it to NYK Line and Astomos. NYK Line and Astomos will hold the vessel under a joint ownership. The ship is equipped with a dual fuel engine, which can burn LPG and conventional marine fuel. The VLGC can reduce sulphur oxide emissions by more than 95pc and CO2 emissions by over 20pc by consuming LPG, as compared to burning heavy oil. The VLGC can also be retrofitted to consume ammonia as shipping fuel. The vessel is designed to carry LPG and ammonia at the same time, given prospects of future demand growth of ammonia as a carbon neutral fuel. Japanese companies have accelerated efforts in seeking alternative fuels for shipping to achieve decarbonisation. Shipping firm Mitsui OSK Line (Mol) conducted a joint study with domestic shipbuilders to develop ammonia-fuelled mid-sized ammonia and LPG carriers , targeting commissioning of the first vessel by 2026. Mitsubishi Shipbuilding plans to build two methanol-fuelled coastal roll-on roll-off vessels and deliver them within the April 2027-March 2028 fiscal year. Mol, KHI and their partners have been developing a hydrogen-fuelled multi-purpose ship . Shipbuilder Japan Marine United in May delivered an LNG-fuelled Capesize bulk carrier to domestic shipping firm Kawasaki Kisen Kaisha. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
AW Shipping’s VLACs join newbuild order book
AW Shipping’s VLACs join newbuild order book
Singapore, 12 June (Argus) — AW Shipping, a joint venture between Abu Dhabi's state-owned Adnoc and Chinese petrochemical producer Wanhua Chemical, has ordered up to four Very Large Ammonia Carrier (VLAC) newbuilds. AW Shipping ordered up to four 93,000m³ VLACs from China's Jiangnan Shipyard in Shanghai. The deal was for two firm and two optional VLACs, with prices estimated at around $120mn each, according to sales and purchase and newbuild vessel sources. AW Shipping has yet to respond to Argus to confirm the prices. It added five very large gas carriers to its fleet at the end of last year. The 86,000m³ newbuilds — Al Ain , Zakher , Rabdan , Al Salam and Baynounah — were built by Jiangnan and are equipped with dual-fuel engines that can run on LPG, which will be used as the primary fuel, as well as standard bunker fuels, the company said. Ammonia carrier demand is increasing as it gains traction in the energy and agricultural sectors and plays a part in decarbonisation efforts. It is becoming more popular because of its low-carbon qualities, which make it a desirable option for use in power plants and as an alternative fuel in the maritime sector. Ammonia is also extensively used in the production of fertilizer. But development of a VLAC market could be delayed by a lack of terminal infrastructure to allow discharge of 40,000-60,000t cargoes, said Steem1960 ammonia shipbroker Lisa Maria Assmann at the Argus Clean Ammonia conference in Tokyo in May. Around 40 VLACs are scheduled to hit the water between 2026-28, when an uptake in clean ammonia trade is likely to be pushed by public tenders from South Korea and Japan. "VLACs cannot discharge these large volumes using the existing infrastructure," Assmann said. "We have storages that are much smaller than that, terminals with draft issues, LOA (length overall) issues. With all these problems, I do not see these large volumes being discharged in a speedy manner in the short term, not before 2035-40 at least." By Sean Zhuang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s SECI seeks long-term green ammonia supply
India’s SECI seeks long-term green ammonia supply
Singapore, 10 June (Argus) — State-owned Solar Energy Corporation of India (SECI) has issued a tender on 7 June to select eligible suppliers to supply 539,000 t/yr of green ammonia. The ammonia will be supplied to 11 fertilizer facilities in India, owned by eight different fertilizer producers. Offers are to be submitted online by 29 July and in hard copy by 31 July. SECI will then hold a reverse auction to select the successful suppliers. SECI will sign a Green Ammonia Producers Agreement (Gapa) with the successful suppliers for a period of 10 years based on the terms and conditions of the tender. Participants are to submit a fixed price which shall remain valid for the duration of the Gapa. Successful suppliers under this tender are required to set up green ammonia production facilities in India to produce and supply green ammonia to the phosphate fertilizer producers listed in the table below, including building storage and transporting product to the producers. Successful suppliers will have access to the following government subsidies: 8.82 rupees/kg ($105.62/t) of green ammonia in the first year of production and supply Rs7.06/kg during the second year of production and supply, Rs5.30/kg during the third year of production and supply They will also be eligible for carbon credits, which will be issued by a separate entity and not discussed in this tender. This tender was initially announced in January . It is part of SECI's efforts as an agency under India's Ministry of New and Renewable Energy (MNRE) and the implementing agency for the Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme under India's National Green Hydrogen Mission aimed at enabling rapid scale-up, technology development and cost reduction of green hydrogen production. By Huijun Yao Tendered capacity for green ammonia supply unit Fertilizer Producer Location Green ammonia requirement (t/yr) Shipment schedule Indian Farmers Fertilizer Cooperative Limited (IFFCO) Kandla, Gujarat 100,000 25,000 t/quarter IFFCO Paradeep, Odisha 100,000 25,000 t/quarter Madras Fertilizers Limited (MFL) Manali, Chennai, Tamil Nadu 4,000 350 t/month Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) Bharuch, Gujarat 50,000 12,500 t/quarter Paradeep Phosphates Limited (PPL) Paradeep, Odisha 75,000 23,500 t/quarter PPL Zuarinagar, Goa 25,000 4,500t every other month Indorama India Private Limited (IIPL) Haldia, West Bengal 20,000 1,100-1,200 t/month Mangalore Chemicals & Fertilizers Limited (MCFL) Panambur, Mangalore, Karnataka 15,000 3,000 t/quarter Coromandel International Limited (CIL) Vishakhapatnam, Andhra Pradesh 50,000 - CIL Kakinada, Andhra Pradesh 85,000 - CIL Ennore, Tamil Nadu 15,000 - Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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Substantial growth in US Gulf ammonia exports is changing trade flows in the Americas, with additional export capacity due to come on line. This white paper explores these developments, their impact, and addresses whether new price mechanisms are needed to reflect this latest shift in market dynamics.
Podcast - 31/01/24Fertilizer Matters: Red Sea fertilizer logistics Jan 2024
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