OCI restarts Beaumont methanol unit (Update 1)

Spanish Market: Fertilizers, LPG, Petrochemicals
11/12/14

Updates first paragraph to indicate restart.

OCI Partners restarted the methanol and ammonia units at its plant near Beaumont, Texas today after a water pump feeding the methanol unit failed, forcing the shutdown of both units, according to a filing with the Texas Commission on Environmental Quality.

Because of the lack of available steam following shutdown of the methanol unit, the ammonia unit also was shutdown.

OCI's Beaumont facility can produce up to 730,000 t/yr of methanol and 265,000 t/yr of ammonia.

mk/als

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15/12/25

Mosaic pauses Esterhazy potash mining after fatality

Houston, 15 December (Argus) — North American fertilizer producer Mosaic paused potash production today in Esterhazy, Saskatchewan, after a worker died in a mine collapse. According to Mosaic, a "fall of ground" incident took place at the K3 underground mine in Esterhazy, resulting in the death of one employee. No other injuries were reported. The producer's emergency response team was activated following the incident. The site is being secured and a full investigation is underway, Mosaic said. The Esterhazy site has a nameplate capacity of 7.8mn metric tonnes/yr of potash and three mines— K1, K2 and K3— with K3 completed in 2022. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU to dilute Ice vehicle phase out: German lawmaker

15/12/25

EU to dilute Ice vehicle phase out: German lawmaker

Brussels, 15 December (Argus) — The European Commission is likely this week to dilute its plan to phase out sales of new internal combustion engine (Ice) vehicles by 2035, according to a lawmaker. "The ban on internal combustion engines is history," said Manfred Weber, the chair of parliament's largest centre-right group EPP. He said the commission will present on 16 December an automotive package that "will revise the CO2 standards for cars, reversing the disastrous ban on internal combustion engines". Weber is a member of Germany's CDU/CSU party, as is commission president Ursula von der Leyen. German chancellor Friedrich Merz has called on the EU to allow the sale of vehicles with highly efficient combustion engines, plug-in hybrids and range-extender EVs beyond 2035. This had faced pushback, with more than 150 European e-mobility firms requesting the commission "stand firm" on its 2035 target. An EU official said the target is now likely to be for a 90pc GHG reduction from 2035 for new vehicles. "As it stands the targets for 2030, but also 2035, are not realistic," said Sigrid de Vries, director general of the European Automobile Manufacturers' Association (ACEA). "Even with a 90pc target [for reducing GHG by 2035], make no mistake, that will be very, very challenging." The European motor industry has already flagged the possibility of huge fines for manufacturers should they fail to meet existing emissions targets, which are for a 15pc reduction by 2029 compared with a 2021 baseline, and a 55pc reduction from the same baseline in 2030-34. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US-Belarus potash trade may soften MOP pricing outlook

15/12/25

US-Belarus potash trade may soften MOP pricing outlook

London, 15 December (Argus) — Potash trade between the US and Belarus is set to be reinstated after an absence of almost four years, following the lifting of US sanctions on Belarusian potash on 13 December with immediate effect — a move that could soften the outlook for global MOP prices as supply options increase. The relationship between the US and Belarus had started to ease earlier this year when Belarus agreed to release 52 political detainees from its prisons in exchange for the lifting of some sanctions on Belarusian flagship airline Belavia in September. This limited rapprochement generated talk among market participants of the possibility of a further lifting of US sanctions on Belarus, which could affect Belarusian potash. US sanctions on Belarusian potash , which is produced by state-owned Belaruskali and marketed by BPC, have been in place since 2021. But the announcement over the weekend has largely caught the market by surprise. The policy change could lead to a significant shift in potash trade dynamics, with implications that extend well beyond the borders of both countries. For the US, it would further diversify its potash supply chain, reducing its heavy reliance on Canadian imports and improve its negotiating position in ongoing tariff disputes with the country. For Belarus, regaining access to the US market opens up an opportunity to diversify export destinations and stabilise revenues for one its most vital commodities. Such changes could make the US a more competitive market in terms of pricing. At a global level, buyers that had previously stopped purchasing Belarusian potash will have more supply options and could use this as leverage to push down prices with their current suppliers. On the contrary, a potential reduction of Belarusian MOP to other markets in favour of the US would likely see other markets become less competitive. But it is unlikely that the market will see such developments in the near term. It will take some time for US-Belarus trade to resume as administrative and financial processes still need to be put in place, and US potash buyers will need to be incentivised to buy Belarusian MOP over Canadian tons as some still refuse to purchase Russian product. What's in it for the US? The removal of Belarusian potash sanctions enables the US to possibly further diversify its sources for potash imports, signalling that this is more of a White House priority than market participants had originally anticipated. The US has limited domestic MOP production and is heavily reliant on imports, particularly from Canada. The country imported 13.5mn t of MOP for the 2024/25 fertilizer year, with roughly 85pc of it sourced from Canada and 9pc coming from Russia, according to US Census Bureau data. No other major potash import market relies so heavily on one source. Belarusian MOP has not touched US soil since February 2022, but in 2017-21 an average of 635,000 t/yr of Belarusian MOP was brought into the country. This policy change also comes just days after US president Donald Trump claimed he could impose severe tariffs on Canadian fertilizer imports, and the return of trade with Belarus may be used as leverage for the US in the current tariff war between the two countries. But the US will not be able to replace all of the 11mn-12mn t/yr of Canadian potash it needs with Belarusian product. It is also in line with Trump's strategy to secure the country's critical minerals needs. Trump included potash in the administration's list of American critical minerals this year and ordered the US government to fast-track permit reviews for critical minerals projects . The importance of potash was also highlighted when the White House spared a number of potassium-based fertilizer products — MOP, SOP, NOP, NPK and magnesium sulphate — from a raft of tariffs imposed earlier this year. In the US domestic market, traders appear largely unfazed by the new development. There have been strong MOP imports this year and there are currently healthy inventories of MOP across the Corn Belt. Additional volumes from Belarus could oversupply the market, pressuring prices downwards at a time when potash is already the most affordable nutrient domestically. But it is likely to take some time for Belarus to regain market share as it is possible that some companies may self-sanction against Belarusian potash — similar to companies self-sanctioning against Russian potash — while suppliers currently find prices in the US unattractive at $305-310/st fob Nola and alternative markets such as Brazil are providing a better netback, which could deter Belarus from promptly returning to the US market. Potash suppliers often switch between the US and Brazil, depending on which market is paying a premium. Moreover, the administrative processes to facilitate the return of Belarusian trade in the US will also likely take some time to be implemented. What's in it for Belarus? Belarusian potash is one of the most important commodities for the Belarusian economy and provides the country with a major source of foreign revenue. Following sanctions, Belarusian MOP practically disappeared from the global potash market in 2022. Yet Belarus regained its footing in the international market far quicker than expected and has managed to continue selling significant volumes of potash to the global market with the help of creative paperwork and lax enforcement of the sanctions. Russia played a pivotal role in this recovery. After Belarus lost access to the Lithuanian port of Klaipeda — previously the main export hub for Belarusian potash exports — from 1 February 2022, the marketer was forced to declare force majeure and find alternative routes to export its product. Today, most Belarusian potash exports flow through Russian ports, a shift that has increased costs and extended lead times. Argus estimates that Klaipeda typically handled 9mn-11mn t/yr of Belarusian MOP. This year, Belarus is on track to export more than 12mn t, surpassing pre-sanction export levels. Without access to the US and EU markets, Belarus has leaned heavily on markets such as Brazil, China and southeast Asia, often pricing aggressively to maintain market share. The reopening of US trade offers a chance to reduce dependence on these regions. The lifting of the sanctions will also make it significantly easier for companies to trade Belarusian potash around the world, except in the EU and the UK. where sanctions remain on Belarus. Importers that had previously stopped taking Belarusian MOP may now be open to trading with Belarus again. By having an additional supply option, buyers may find they have a stronger negotiating position with existing suppliers, which could put downward pressure on prices. Conversely, markets where Belarus has a strong presence could see a reduction of Belarusian volumes if product shifts toward the US, potentially making those regions less competitive. The policy change also comes at a time when Belarusian MOP capacity is increasing capacity, with the 2mn t/yr Nezhinsky MOP project scheduled for commissioning in the second quarter of 2026, and underscores Belarus' commitment to continue growing its footprint in the global potash market. By Julia Campbell and Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Mitsui Chemicals to raise S Korea MDI output

15/12/25

Japan’s Mitsui Chemicals to raise S Korea MDI output

Tokyo, 15 December (Argus) — Japanese petrochemical company Mitsui Chemicals plans to boost output capacity of its methylenediphenyl diisocyanate (MDI) plant in South Korea's South Jeolla province by May 2027. Mitsui Chemicals aims to raise MDI production capacity at the plant by 100,000 t/yr to 710,000 t/yr, from 610,000 t/yr, the company said on 15 December. Kumho Mitsui Chemicals, a 50:50 joint venture between Mitsui and South Korean chemicals firm Kumho Petrochemical, operates the plant. The company plans to begin construction in February 2026. It expects demand for MDI, a core material for polyurethane, to continue growing because of decarbonisation and economic growth, Mitsui Chemicals said. MDI is used for various products including automotive components, furniture, bedding and heat insulation for houses. The company believes the shift towards decarbonisation will drive MDI consumption for heat insulation, while economic growth will enhance demand for more comfortable cars and households. Mitsui Chemicals also expanded MDI production capacity at the plant by 200,000 t/yr to 610,000 t/yr in 2024 . The prospect of MDI demand growth has prompted fellow Japanese petrochemical producer Tosoh to build an MDI splitter in south Vietnam's Ba Ria–Vung Tau province, aiming to begin commercial operations by October 2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Aramco Jafurah project still in commissioning: Resend

15/12/25

Aramco Jafurah project still in commissioning: Resend

Clarifies distinction between raw gas and sales gas. Story originally published on 11 December Dubai, 15 December (Argus) — Saudi state-controlled Aramco has begun to commission the first phase of its giant Jafurah natural gas project, but is yet to begin full commercial operations, according to the company's executive vice president of gas Abdulkarim Al-Ghamdi. "Jafurah… we started the commissioning last week," Al-Ghamdi told the Middle East Gas Conference in Dubai on Wednesday. "And that will be commissioned fully now, for production, before year-end." The phase is "on schedule" and "in advanced commissioning", he said. Al-Ghamdi's comments are the first from Aramco since the Saudi finance ministry said production at Jafurah had begun. In its 2026 budget released last week the ministry listed "completion of the first phase of the Jafurah gas plant construction and commencement of production with a capacity of 450mn ft³/d," as one of the country's achievements for 2025. It did not specify a date for the start. Aramco has not made its own start-up announcement. A source close to the project said a formal Aramco announcement regarding Jafurah is likely "soon" ꟷ probably before the end of the year when commissioning is complete, as per Al-Ghamdi's comments. With in-place reserves of 229 trillion ft³ (6.87 trillion m³) of raw gas and 75bn bl of condensate, Jafurah is the largest unconventional gas field in the Mideast Gulf, and constitutes a major pillar of Aramco's ambitious gas expansion plans. The 450mn ft³/d capacity referenced by the ministry reflects the project's initial maximum raw gas processing, which aligns with Aramco's long-held plans for output to begin at 200mn ft³/d as sales gas, rising to 650mn ft³/d of sales gas by the end of 2026. A second phase, which is scheduled to come on stream in 2027, would then gradually lift sales gas production to 2bn ft³/d by the end of the decade. It constitutes part of an ambitious Aramco programme to expand gas production by more than 80pc by the end of the decade, relative to a 2021 baseline of 9.2bn ft³/d. This implies output of at least 16.6bn ft³/d by 2030, with Jafurah delivering just over one-quarter of the increase. Jafurah will also produce about 420mn ft³/d of ethane, and 630,000 b/d of NGLs and condensate as by-products by 2030. Traders told Argus last week that Aramco has offered spot Jafurah condensate for loading in February. Market sources say Jafurah condensate has an API gravity of 49.75° and sulphur content of 0.16pc. The ethane and NGLs will be sent to the Riyas fractionation plant, which is being built as part of the phase two development. The condensate will be sent to the Juaymah terminal, where Aramco is expanding its storage and export facilities. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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OCI restarts Beaumont methanol unit (Update 1)

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