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![Page 1: Ammonia Transportation, Distribution & Logistics · PDF fileAmmonia Transportation, Distribution & Logistics Argonne National Laboratory October 14, 2005 Greg Hutchison Managing Director](https://reader034.vdocuments.site/reader034/viewer/2022052319/5a9e4d3a7f8b9a2e688d38f3/html5/thumbnails/1.jpg)
Ammonia Transportation,
Distribution & Logistics
Argonne National Laboratory
October 14, 2005
Greg Hutchison
Managing Director Logistics
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Agenda
World Supply > Growth > Trade Flows
Economic Issues Trade Ammonia
North American Industry
North American Transportation, Distribution,
and Logistics
What is NH3?
How is NH3 transported & stored? By mode
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Ammonia World Capacity Key
Producing Areas
China
Russia Ukraine
EEC
USA
Canada
Middle East
Indonesia
Trinidad
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World Capacity
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Forecast World Growth
Production Dependent Upon Gas CostsMiddle East, Indonesia, Trinidad
Developing EconomiesChina, Russia, India
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World Growth
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Trade Flow Issues
Supply : lower gas production costs
Demand : agriculture, industrial
Gas price regional
Storage terminals compressed gas
Hazardous material
Expensive to handle
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World Trade Flows
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Estimated Ammonia Costs
Delivered to Mississippi River
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USA Ag Ammonia Supply - Demand
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
Production Imports Exports Stocks Demand
1995 1996 1997 1998
1999 2000 2001 2002
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USA Ammonia Supply - Demand
0
5000
10000
15000
20000
25000
US production
imports
demand
2003 2004 2005
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US Ammonia Imports(million’s of tons of ammonia)
Source 2002/03 2003/042003/04
Share %
Trinidad 3.8 4.2 53%
FSU 1.7 1.7 21%
Canada 1.3 1.3 17%
Venezuela 0.3 0.3 4%
Middle East 0.1 0.1 1%
Others 0.1 0.3 4%
Total 7.3 7.9 100%
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Ammonia Imports by Region
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NA Base Capacity
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NA Capacity Shutdown
NG prices above $5 - 10
1.7 million N tons of 16.99 million
capacity has closed
Currently plants closedPut names here
Total Capacity
Increased Imports Pipeline NOLA
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NA Demand to Production
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USA Demand - 20.1 million tons
Agriculture : 17.9 million tons
Industrial : 2.2 million tons
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Agriculture County Demand
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State Production Capacity
State Capacity Tons Rank
LA 4,514,000 1
OK 2,515,000 2
AK 1,416,000 3
IA 791,000 4
GA 758,000 5
KS 695,000 6
TX 680,000 7
MS 669,000 8
OH 598,000 9
VA 584,000 10
TN 409,000 11
ND 400,000 12
IL 306,000 13
NE 292,000 14
AL 193,000 15
WY 192,000 16
OR 111,000 17
FL 86,000 18
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Plant Closures Gas to NOLA
Ammonia Price
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Ammonia Plants and Terminals
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Distribution
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Distribution
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Distribution
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Distribution
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Distribution
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Supply Chain Logistics
Production to Demand
Vessel to Terminal
Pipeline to Terminal
Barge to Terminal
Rail to Terminal
Truck from Production
Truck delivery common mode end delivery agriculture
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Anhydrous ammonia (NH3) exists naturally in a gaseous
state under atmospheric pressure and temperature. Under
moderate pressure it changes easily to a liquid, becoming a
gas again when the pressure is reduced. Industries take
advantage of this characteristic by shipping and storing
liquefied ammonia in pressurized railway cars, tank trucks
and cylinders of various sizes.
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SUPPLY-production
Ocean going
vessel to
terminal
Pipeline to
terminal
Barge to
terminal
Rail to
terminal
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Storage tanks
NH3 is stored in a
liquefied state at
approximately -28° F
This is accomplished with refrigeration
compressors
NH3 is loaded into trucks or rail cars using
a heater
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ocean going
vessel to
deep water terminal
production to
ocean going
vessel
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Ship
NH3 is liquefied by being cooled to
approximately -28° F
Ships keep cargo cool via refrigeration
compressors
Ships are also in LPG trade
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barge to
river terminal
deep water terminal
or production
to barge
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Barge
NH3 is liquefied and
transported at approx.
-28° F
Barges use refrigeration compressors to cool cargo
Typical NH3 tow is 5,000 st
Age of barge fleet in US averages 40 years
Cost of replacement approximately $5mm perbarge
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rail to
inland terminal
or
end user
deep water terminal
or production
to rail
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Rail
NH3 is shipped in a liquefied state under pressure, notrefrigeration.
NH3 is actually heated from -28° F to between 30° & 40° Ffor loading dependent upon outside temperature
Cars are insulated and pressurized
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deep water terminal
or production
to pipeline
pipeline to
inland terminal
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Pipeline
NH3 is injected into the pipeline in a liquefied
state under pressure, not refrigeration.
NH3 is actually heated from -28° F to between
30° & 40° F for injection dependent upon
pipeline temperature
Pipeline is naturally insulated (underground)
Pipeline is pressurized
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terminal to
truck
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Trucks
NH3 is actually heated from -28° F to between
30° & 40° F for loading dependent upon outside
temperature
NH3 is shipped in a liquefied state under
pressure, not refrigeration.
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IOWA
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Closing Statements
Ammonia and gas prices
Further closing of NA plants
Higher degree of imports
Cost sensitive
Current foot print of NH3 distribution
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Questions????
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