AW Shipping’s VLACs join newbuild order book

Spanish Market: Fertilizers, Freight
12/06/24

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

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19/05/25

Egypt’s NCIC issues tender to sell fertilizers

London, 19 May (Argus) — Egyptian producer NCIC has issued a tender to sell various fertilizers for loading in June, closing on 24 May. NCIC is offering the following products: 30,000t of DAP – it sold 15,000t at $683-687/t fob in its last tender, probably for shipment to Europe 17,000t of TSP – it sold 15,000t at $535-540/t fob in its last tender. The cargo was probably sold at $573/t cfr Brazil 30,000t of 19pc SSP – it sold 30,000t at $255-280/t fob in its last tender, probably for shipment to Brazil 10,000t of CAN 27 – it sold 10,000t at $275-280/t fob in its last tender 5,000t of granular urea – it did not award the 5,000t offered in its last tender 1,500t of water-soluble SOP – it sold 1,500t at $600-605/t fob in its last tender NCIC's last sales tender offered May-loading fertilizers and closed on 15 April. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global dry bulk trade to contract in 2025: Star Bulk

15/05/25

Global dry bulk trade to contract in 2025: Star Bulk

New York, 15 May (Argus) — Dry bulk shipowner Star Bulk projects the total volume of global dry bulk volumes to fall by 1.2pc in 2025, largely due to lower global dry bulk exports to China Coal is projected to suffer the largest declines in global export volumes among major bulk commodities as China and India's domestic coal production growth is outpacing its consumption growth, creating downside risks for 2025 imports, according to Star Bulk. The global coal trade is expected to fall by 3.2pc on the year, down to 1.3bn t for 2025. China is also trying to increase its own grain productionand is "engaging in [genetically modified] crops" which will put downward pressure on its seaborne grain imports, according to Star Bulk. The global grain trade is projected to decline by 2.1pc on the year, down to 524mn t in 2025. For global iron ore exports the outlook is less clear. Low Chinese domestic production and stocks may increase demand but rising protectionist measures from steel-importing nations could curb Chinese steel production for the coming quarters, according to Star Bulk. Increases in minor bulk exports, such as bauxite or fertilizers, will rise on the year but not enough to mitigate decreases in major bulk volumes. The volume of minor bulk trade is expected to grow by 0.4pc on the year, driven by higher bauxite exports out of west Africa. Star Bulk's fleet consists of 150 bulk carriers including 17 Newscastlemaxes, 16 Capesizes, 38 Kamsarmaxes and 48 Ultramaxes. Star Bulk reported a first quarter profit of $462,000, down from $74mn in the same quarter the previous year. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Aramco eyes stake in Australia's Louisiana LNG project

14/05/25

Aramco eyes stake in Australia's Louisiana LNG project

Sydney, 14 May (Argus) — Australian independent Woodside and Saudi state-owned oil firm Aramco have entered into an agreement for Aramco to possibly buy a stake in Woodside's 16.5mn t/yr Louisiana LNG project and to explore other opportunities, including lower-carbon ammonia. As part of the non-binding agreement, Aramco could buy an equity interest in and LNG offtake from its Louisiana LNG project, Woodside said without disclosing further details. This comes after Woodside reached a final investment decision on the project in late April. Woodside and Aramco signed the agreement in Riyadh in Saudi Arabia at the Saudi-US investment forum , which was attended by Arabian crown prince Mohammed bin Salman and US president Donald Trump. The collaboration shows Woodside's Louisiana project is generating interest among "high-quality potential investors," Woodside's CEO Meg O'Neill said, after selling 40pc of the project's infrastructure to US-based investment firm Stonepeak in early April. The agreement will also help the firm build a more diverse portfolio, as it branches into chemical production, O'Neill said. The firm's wholly-owned Beaumont New Ammonia project in Texas is expected to produce first ammonia in the second half of this year, and lower-carbon ammonia by the second half of next year. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indian state props up green H2 with 130,000 t/yr tender

13/05/25

Indian state props up green H2 with 130,000 t/yr tender

Mumbai, 13 May (Argus) — India's western state of Maharashtra is seeking companies to set up subsidised renewable hydrogen production facilities with a total capacity of up to 130,000 t/yr through a tender, as it pursues ambitious output plans. The bulk of the capacity, namely 50,000-100,000 t/yr, would be established through a single "anchor" project. The remaining 30,000 t/yr would come from much smaller projects and would be split between 2-15 different facilities of 2,000-15,000 t/yr. The projects would have to be completed within 36 months of receiving the tender award and would have to maintain production for 25 years. Projects would be able to avail a range of incentives outlined in Maharashtra's green hydrogen policy from 2023 . The large plant could receive up to 30pc capital cost subsidies, while the smaller facilities could get support for up to 15pc. But subsidies would depend on projects meeting certain criteria which will also be factored into the initial selection process. This includes criteria for the use of local components in the plant's construction which will have to reach at least 55pc. Projects would also score higher if they use renewable power that is generated in Maharashtra rather than in another state. Crucially, the large plant would have to sell at least 50pc of its output domestically, which would leave a maximum of 50,000 t/yr for exports. The smaller plants would have to sell all of their output domestically. Electrolyser performance is also taken into account, with a maximum specific energy consumption of 56 kWh/kg and no more than 1pc annual degradation. The bid submission deadline is 7 July, and a pre-bid meeting is scheduled for 14 May. Maharashtra has set a target to produce 500,000 t/yr of renewable hydrogen by the end of March 2030, with an allocated budget of 85.6bn rupees ($1bn)—nearly half of India's total allocation for its green hydrogen mission. Under its policy, a maximum of three anchor projects with a hydrogen production capacity of at least 50,000 t/yr will receive capital subsidies — suggesting that more similar tenders could follow at a later stage. Last month, state-owned Mahatma Phule Renewable Energy and Infrastructure Technology (Mahapreit) already invited proposals to set up a renewable ammonia plant with a capacity of 60,000-100,000 t/yr. Mahapreit is 51pc owned by Maharashtra's state government, while India's central government holds 49pc. By Akansha Victor Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ethiopia’s EABC still needs up to 400,000t DAP in 2025

09/05/25

Ethiopia’s EABC still needs up to 400,000t DAP in 2025

London, 9 May (Argus) — Ethiopian Agricultural Businesses (EABC) will close a tender to buy 425,390t of DAP on 13 May. Argus estimates it needs to secure the majority of this volume to meet the country's phosphates demand for the 2025 application season. Across all tenders to buy DAP that EABC opened between August 2024-May 2025, the importer awarded 1.16mn t across 18 cargoes. Of this awarded total, Argus estimates only up to 750,000t is likely to be delivered to Ethiopia in a timely manner. This is because some of these awarded cargoes — largely Chinese — did not have firm backing from producers. And the bulk of the awarded Chinese cargoes — which made up almost half of all the awarded cargoes — were not shipped while Chinese producers focused on covering domestic demand. In recent years, Ethiopia had imported phosphate in the form of NPS and NPSB through EABC tenders, generally all from Morocco. But in August 2024, ahead of the 2025 domestic season, EABC switched from importing NPS to asking for DAP 18-46. In its last tender to buy NPS, issued in August 2023, EABC asked for around 1mn t of NPSB and 332,000t of NPS containing 37.7pc and 38pc P2O5, respectively. On a P2O5 basis, the 2023 NPS tender asked for a total of around 1.1mn t of DAP-equivalent. This implies EABC needs to line up a further 350,000-400,000t of DAP, assuming a similar demand for P2O5 as last year. Argus line-up data shows 1.046mn t of NPS shipped from Morocco's Jorf Lasfar to Djibouti in the 12 months following August 2023. On a P2O5 basis, this is probably equivalent to only around 900,000t of DAP. EABC would need to buy 150,000-200,000t more to reach this level. Chinese DAP will probably dominate offers into EABC's 13 May tender. After a hiatus of around six months, Chinese suppliers will likely be able to apply for customs inspections under the CIQ system from mid-May for DAP and MAP cargoes. This implies Chinese DAP exports will resume from as early as late May, in time to meet EABC's requirements. Time running out for Ethiopia's season EABC is likely to struggle to secure the remaining DAP needed before the end of Ethiopia's domestic season. Planting during Ethiopia's Meher — the main rainy season — broadly spans from March to June. In its latest tender to buy DAP, closing on 13 May, EABC asked for a loading period up to mid-July. In 2024, the final cargoes under EABC's 2023-24 tender to buy NPS had already arrived in Djibouti by that time. Under the 23 April and 13 May EABC tenders, cargoes loading in June — particularly from closer origins like Saudi Arabia — could still arrive in time to service the tail end of Ethiopia's DAP season. But the bulk of the country's application season will likely have been missed by then. EABC's next tenders will likely be targeting supply for the 2026 domestic season. DAP is more expensive Tender awards are limited by EABC's allocation of funds for DAP before offers are collected. The importer received eight 60,000t offers ranging from $696.27-748.00/t fob with 30 days of credit in its 23 April tender, and awarded only the lowest offer before scrapping the tender and issuing a fresh one. It rejected revised offers in its 20 February and 25 March tenders, which were above its counterbids at $625/t fob and $647.19/t fob, respectively. Awards in the 13 May tender will likely remain difficult because prices in the global DAP market have risen. DAP prices in India — the global DAP benchmark and a key competitor to Ethiopia — are now around $720/t cfr, up significantly from $590/t cfr at the beginning of August 2024. DAP could go elsewhere Any DAP which Ethiopia does not acquire will find willing buyers elsewhere in south and southeast Asia. India began May with around 1.64mn t of DAP in stock — well below a comfortable 2mn t minimum — and will need to boost imports to build its inventories. Bangladesh will likely issue a private-sector tender in the coming weeks, probably seeking around 500,000t or more of DAP. China is traditionally its main supplier, especially through its private-sector tenders. Demand in southeast Asia has generally seen an uptick because of high rainfall, and many buyers have been holding out for the resumption of Chinese exports. DAP prices have reached $700-715/t cfr southeast Asia on latest sales, but offers are climbing higher. And Pakistan will likely step into the import market to secure tonnes for July-August arrival, ahead of the peak of its domestic season from the end of the third quarter. EABC received offers for Jordanian and Saudi Arabian DAP loading in May in its 23 April tender. It rejected the offers, allowing India to buy probably the same cargoes at $719.50/t cfr earlier this month. By Adrien Seewald Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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