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Cosmo Oil to Supply Ube Ammonia with Petroleum Coke
Japan Chemical Web 02 Jun 2010Ube Ammonia Industry has decided to begin procuring from Cosmo Oil as early as this summer 60,000 t/y of petroleum coke, which is planned to rise to 100,000 t/y at a later date, to feed its ammonia production. Cosmo Oil will be its second source in Japan, and a long-term supply contract between the two companies is an option for the future. Cosmo Oil’s Sakai refinery, which recently installed a heavy-fuel-oil cracking unit and brought online early this year an output capacity of 400,000 t/y of petroleum coke, will be supplying Ube Ammonia.
The Ube Industries subsidiary has the ability to make 360,000 t/y of liquid ammonia, which requires 400,000-500,000 t/y of petroleum coke. It currently sources 20,000 t/y of its requirement from Japan Energy in Japan and the rest from the US and Canada. With China becoming a major export destination for petroleum coke produced in the US and Canada, the global market is tightening and prices could climb. The company is therefore taking action to limit its dependence on imports and ensure stable supply of its raw material. By diversifying its feedstock sources, it also plans to keep a tight rein on its production costs and stay competitive in its industry.
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Here is Confirmation of Cosmo Sakai (~450 kmtpy) New Coker online earlier 2010 ( see post Mar Conf Coker news) & one of its new petcoke contracts.
Ube two Japan contracts (20kmt & Cosmo 60kmt – initially) could eventually back out US & Canada sources – which are currently tight due China demand & low N.America production levels. Given the new Cosmo coker produces 400-500 kmty it might even put Sumitomo contract supplying Canadian petcoke at risk?
Regards
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