- SABIC Agri-Nutrients is expanding its urea production capacity by 54%, increasing from 4.8 million tonnes to approximately 7.4 million tonnes annually.
- The expansion project, costing about $3.465 billion, includes the construction of an ammonia plant and two urea plants, alongside a carbon capture unit.
DAMMAM: SABIC Agri-Nutrients Co. is targeting markets in Asia, the US and Canada to absorb the expected increase in its urea production, leveraging a major expansion in production capacity through its seventh project, which is expected to strengthen its competitiveness and position in the global agricultural-nutrients market, SABIC told Al-Eqtisadiah.
The company said SABIC Agri-Nutrients has a commercial presence and customer base across several global markets, supported by marketing teams operating in key markets, providing a base for marketing the additional output expected from the project.
$3.4bn project cost
On Sept. 10, SABIC Agri-Nutrients awarded the engineering, procurement and construction contract for its seventh project to Samsung E&A Co. for approximately $3.465 billion.
The project includes the construction of an ammonia plant with an annual production capacity of 1.2 million tonnes, two urea plants with a combined annual capacity of 2.6 million tonnes, and a post-combustion carbon capture unit.
SABIC said its subsidiary has a dedicated marketing team and commercial presence in Asia and the US, as well as existing customers and contracts in these markets, adding that the expansion represents a strategic project that will strengthen its position in the agricultural-nutrients sector and support Saudi Arabia’s role in the global food-security system.
54% increase in urea production capacity
The project is expected to increase SABIC Agri-Nutrients’ urea production capacity by about 54 percent, from the current 4.8 million tonnes to approximately 7.4 million tonnes annually, providing significant additional volumes that can be directed to domestic and international markets.
Construction is expected to begin in the fourth quarter of 2026, with commissioning scheduled to start in the third quarter of 2030 and commercial production expected to begin in the fourth quarter of the same year.
According to the company’s announcement, the project’s financial impact will be reflected in its financial results after completion and the start of commercial operations, with the firm currently evaluating financing options, including loans and its own cash flows.
