Abu Dhabi's state-owned Adnoc and Moroccan fertilizer producer OCP signed a long-term sulphur sales agreement on 27 December.
Adnoc will supply OCP with granular sulphur until 2025 under the deal. OCP acquires sulphur largely from Adnoc on a quarterly contract basis — it is understood that prices will still be negotiated on this basis under the new agreement.
OCP imported 5mn t of sulphur in 2016, over 2.2mn t of which came from the UAE, GTIS data show. The firm received 4.5mn t of sulphur in January-October this year, of which Adnoc provided 1.76mn t.
The parties have agreed to consider a gradual increase in contracted quantities under the new agreement. Adnoc and its partners produce more than 6mn t/yr of sulphur, with their capacity expected to rise as new sour gas projects come on stream.
OCP's sulphur consumption is forecast to increase in the next two years, as it expands finished fertilizer capacity at its Jorf Lasfar processing facility by 3mn t/yr to 15mn t/yr. The expansion will result from new capacity from the Jorf Lasfar Phosphate Hub programme and the optimisation of exiting units.
