Sulfur is a by-product in the purification of produced natural gas and oil. Traditionally, the resulting liquid sulfur is converted into a solid state (lump or granular sulfur).
After transportation, solid sulfur is again converted into liquid form for further use. Russia traditionally sells sulfur only in solid form.
"Gazprom" to improve the environment (due to reduced dusting) and reduce the cost of converting to a solid state thought about building a liquid sulfur terminal in Novorossiysk with a capacity of 600 thousand tons. (Risk Management Institute).
As part of the justification for the feasibility of building a terminal, the Customer formulated the research objectives:
- estimate the forecast capacity of the liquid sulfur market;
- identify liquid sulfur receiving terminals in operation and under construction;
- identify customers of liquid sulfur in net importing countries;
- prepare a long-term reasonable price forecast for liquid sulfur (including ship charter and transshipment).
Conducted Industrial Information Agency the study confirmed the demand for the global "commodity" liquid sulfur market in the amount of several million tons. Identified consumers in Tunisia and Morocco confirmed their interest in receiving liquid sulfur from Russia.
At the same time, considering:
- volatility of sulfur prices;
- need organization of expensive special infrastructure for the producer and consumer for loading, unloading and storing liquid sulfur;
- the amount of energy consumption for heating liquid sulfur during transportation, storage and transshipment;
- freight rates for special tankers and other specific factors;
Construction of the terminal was deemed inexpedient.
