Displaying items by tag: Gas

Oman: Raysut Cement has commissioned and completed a gas pressure reduction unit at its plant in Salalah. The upgrade will enable the plant to increase its production capacity to 140,000t/yr from 130,000t/yr. This is expected to increase the profitability of the company. The cost of the project was estimated at US$5.45m when it was first announced in December 2015.

Oman: Raysut Cement is upgrading its gas supply station at its Raysut plant in Salalah. The installation will let the unit receive an additional 40,000m³/day of gas for use as fuel to increase cement production to about 140,000t/yr.

Other on-going upgrades by the cement producer include the implementation of the parent company’s joint venture project with Barwaaqo Cement Company in Somaliland. At Duqm Port, construction has been completed on the company’s cement handling terminal, which is expected to formally begin commercial operations in the third quarter of 2016.

Civil works on a new packing plant, which features a 150t/hr rotary packing machine with auto truck loader, is underway. The facility is expected to be commissioned by the end of October 2016. Work on the installation of 12,000t capacity silos is also in progress at the company’s Pioneer Cement in the UAE. The new facility will be commissioned by the end of November 2016.

Nigeria: Production managers at Lafarge Africa’s cement plants at Ewekoro and Sagamu, Ogun State have complained about poor supplies of gas. Segun Shoyoye and Hannes Diedericks made comments to the Nigerian Guardian following a shutdown period of six weeks. They said that the situation started in early 2016 and has led to low production at the plants. The pair made their comments to the press in connection to an inspection of the two plants by officials from the Standards Organisation of Nigeria (SON), led by the Acting Director-General, Paul Angya.

"The major issue is lack of gas supply because of the blowing up of oil and gas pipelines by militants in the Niger Delta region. We are now using a mixture of gas and black oil for our operations, which is highly costly, and also drops our production from 100% to 75% at the Ewekoro plant. This has been going on since February 2016,” said Shoyoye. He added that production at Sagamu stopped for six weeks in May 2016. Production has dropped from 3000t/day to 1000t/day due to the issue. Lafarge Africa is currently sourcing alternative sources of energy for its cement plants.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has led demands that the government abolish the gas infrastructure development cess (tax) (GIDC) because it has made Pakistan-produced cement uncompetitive for export. APCMA chairman Mohammad Ali Tabba said that declining fuel prices, including liquefied natural gas in the international markets, had added to the situation, according to local press.

The Pakistan government enacted the Gas Infrastructural Development Act of 2011 thereby charging a cess or levy on all non-domestic gas consumers. However, the tax has been resisted legally since that time with tussles over whether back taxes should be collected or not.

Tabba also added that a recent increase on the import duty from 1% to 6% on coal should be reduced to zero.

Iran: About 35% of Iran's cement kilns, or 30 – 35 of a total of 97 kilns at 71 cement plants, are not working due to the gas shortage and technical problems, reported Abdolreza Sheikhan, Secretary of Iran's Cement Industry Employers Association on 2 January 2016.

Iran's cement sector is suffering a gas shortage, according to Sheikhan. He said that the country's cement output has decreased by 10 – 12% in 21 March 2015 – 21 November 2015. Sheikhan has forecast that Iran's annual cement output will fall by some 12% compared to the preceding fiscal year, which ended on 21 March 2015. During the year, Iran produced over 61Mt of cement.

The National Iranian Gas Company has stopped supplying gas to a number of cement plants due to a wave of cold weather. However, the ongoing problem is not due to output shortage, but because of a delay in inaugurating a projected compressor station, according to Iranian media. It was already planned that the country's gas transmission capacity would increase by 80Mm3/day in 2016 by installing five compressor stations en route to the transmission pipeline, but the stations have not become fully operational yet.

Oman: Raysut Cement Company has signed an agreement with Arabian Industries for the installation of a gas pressure reduction station (GPRS) at its Raysut plant. Oman Gas Company has been appointed as the Project Management Consultant. Upon completion of the GPRS, cement production will be boosted by 120,000-130,000t/yr. Total investment in the project is estimated at US$5.45m.

Iran: The National Iranian Gas Company has stopped supplying gas to a number of cement plants due to a wave of cold sweeping the country.

As gas consumption has peaked in the recent cold days, some cement plants, including those in the west of the country, have stopped receiving gas, according to Abdolreza Sheikhan, Secretary of Iran's Cement Association. He complained that with the shortage of gas, the plants cannot use the heavy fuel oil mazut either because a government law to provide the factories with mazut at the same price as gas has not been implemented. Despite the fact that the cement plants store enough mazut to run for 7 - 10 days, they are not using their reserves because they are not sure if they will receive mazut as the law has stipulated. Sheikhan said that, when the plants stopped working for 20 days under similar circumstances in 2014, the Oil Ministry refused to pay them from the income it had made by economising on gas.

Argentina: Cement producers are reportedly facing difficulty with gas supplies that are causing cement shortages, according to iProfessional. Local media reports a 70% fall in cement supply in some locations. Shortages are being recorded in Jujuy, Formosa, Misiones, Santa Fe and Chaco.

Belarus: Belarusian manufacturers are expected to export 1.8Mt of cement in 2015, including 1.3Mt to be supplied to Russia's Eurocement, according to Construction minister Anatol Chorny. Belarus sold 980,000t of cement to Eurocement in 2014. Belarus' cement output is expected to total 6.1Mt in 2015, up from 5.8Mt in 2014.

"This year we have signed an exclusive contract for the supply of 1.3Mt," said Chorny. "The contract is advantageous to Belarus because 50% of the total amount shall be paid in advance and the rest shall be paid within 10 days of the delivery date. If the price of cement in the Russian market is lower than in Belarus, the Russian company will cover the losses. If the price will be higher, the difference will be equally divided." Belarus will also export cement to Russia's Kaliningrad exclave, Poland and Lithuania in 2015.

Belarus' AAT Krychawtsementnashyfer in Krychaw, Mahilyow, operated at a loss in 2013. This was caused by its old production plant, which still uses natural gas to manufacture cement. In contrast, the company's new production facility generated a profit of about Euro676,000 in 2014. To reduce the cost of cement production, Krychawtsementnashyfer installed a cement kiln fuelled by waste tyres in 2014 and plans to start using coal dust as a fuel in 2015, according to Chorny.

Egypt: Suez Cement plans to spend US$84m in 2015 to convert its Helwan and Tora 2 cement plants to use coal. The move is a response to Egypt's on-going energy crisis.

The company reported a 40.5% rise year-on-year in third-quarter profit in November 2014 after it managed to pass on higher production costs to consumers. However, its nine month profit fell by 14.6% year-on-year due to severe energy shortages that forced the company to cut output by 40% so far in 2014. Suez Cement was one of the companies affected when the government cut natural gas supplies to factories in January 2014 and has had to import clinker at higher cost.