Ammonia capacity worldwide to hit 249 million tons yearly by 2018

GLOBAL ammonia capacity will reach 249.4 million tons per year (mmty) by 2018 from 204.2 mmty in 2013, according to research and consulting firm GlobalData.

 

Capacity boost in China, Iran, Nigeria, and the U.S. will spur growth, the report further said. The Asia-Pacific (APAC) will remain the largest region in terms of both ammonia capacity and demand with 120.7 mmty capacity by 2018, about half of the global total for the same period. China will continue to be a key player in APAC. The country’s 2013 ammonia capacity of 70.6 mmty accounted for almost two thirds of the region’s total for the year. 

 

The GlobalData report forecasts promising growth for APAC’s major ammonia end-use sectors such as urea and other nitrogenous fertilizers. China, in particular, has a favorable landscape with its huge feedstock reserves and strong demand unlike countries with only either demand or capacity, not both. 

 

Coal’s accessibility will make it the choice of Chinese manufacturers even though it is less cost-effective than natural gas.

 

Meanwhile, ammonia will also be used in refrigerating systems and household cleaning solutions, and in a range of industrial processes, such as stabilizing rubber latex.

 

Iran and Nigeria will lead ammonia capacity growth in the Middle East and Africa, where total capacity will rise to 44.1 mmty by 2018 from 27.8 mmty in 2013. Iran is eyeing a capacity addition of 5.8 mmty, while Nigeria is looking at 4.6 mmty more capacity. 

 

The Middle East and Africa will sustain its impressive growth of the past decade, during which Egypt, Iran, Qatar, and Saudi Arabia boosted ammonia capacity using natural gas. Most of the region’s capacity will target export markets in Asia such as China and India.

 

In North America, capacity expansions will be driven by the U.S. Capacity for shale gas will grow from 20.1 mmty in 2013 to 26.8 mmty by 2020. Growth in the region will slow down a little. The main challenges are high natural gas prices and declining demand from major end-use sectors.