Phosphoric Acid, Phosphates & Fertilizers Experts

Adnoc and Morocco’s OCP sign long-term sulphur supply agreement

Abu Dhabi National Oil Company signed a long-term agreement to supply sulphur to phosphate producer OCP Morocco, the world’s largest sulphur importer.

Adnoc, which supplied 2 million tonnes of sulphur to Morocco last year, agreed with OCP to “consider a gradual increase of the contracted volumes” of granulated sulphur through to 2025, the Abu Dhabi company said.

The oil company is one of the world’s largest producers of sulphur, as a result of its significant reserves of sour gas, which, after processing, yields the yellowish chemical as a byproduct.

The capital’s sulphur production currently stands at 6 million tonnes a year and has seen its global market share nearly double from 6 per cent in 2014 to 11 per cent in 2016.

The main catalyst behind the growth is the commissioning of the sulphurous Shah development in 2015, which has resulted in surplus production of the chemical that finds uses in agriculture and industry.

With more unconventional gas projects targeted as part of its recently-approved Dh400 billion spending plan, Adnoc expects the amount of sulphur available for export to increase in parallel.

The UAE has long targeted becoming the world’s biggest exporter of sulphur, a niche product for hydrocarbon producers who look at lower chemical emissions as harmful to the environment.

OCP, headquartered in Casablanca, is one the biggest producers of phosphate-based fertiliser compounds in the world.