Saudi major Sabic Agri-Nutrients to invest billions in significant new urea capacity from 2030

Sabic Agri-Nutrients’ annual urea capacity will increase by more than half from late 2030 after the Saudi fertilizer major reached final investment decision (FID) for two state-of-the-art plants with a total yearly capacity of 2.6m. tonnes.

The company has awarded the $3.47 billion engineering, procurement and construction (EPC) contract for the new units and the integrated 1.2m. tonne/year ammonia feedstock facility at Jubail Industrial City to South Korea’s Samsung E&A Co.

“Construction activities are expected to commence during Q4 2026, expected commissioning during Q3 2030 for four months, in preparation for the commencement of commercial production and project completion during Q4 2030,” the firm said in a bourse filing today.

“The project is expected to increase the company’s urea production capacity from 4.8m. tonnes per annum to 7.4m. tonnes a year, representing an increase of approximately 54% compared to the current urea production levels.

“The project is also expected to represent a significant step toward enhancing the company’s competitiveness and sustainability through the integration of advanced carbon capture technologies and the reduction of emissions intensity across its operations.

“This will contribute to reducing the carbon footprint of its products, supporting the company’s sustainability and carbon neutrality ambitions.

“The project is considered one of the key pillars of the company’s 2040 strategy, which aims to strengthen the Kingdom’s position in the agricultural nutrients export market and contribute to global food security, in line with the objectives of Saudi Vision 2030.”

Sabic Agri-Nutrients added the financial impact of the project is expected to be reflected in its financial results following the completion of the project and commencement of commercial operations.

“The company will assess various financing options for the project, including financing through loans and the company’s cash flows,” it concluded.

Just under six months ago, the producer received approval from the Ministry of Energy for the required quantities of feedstock to build its seventh plant at the massive industrial city on the Kingdom’s Gulf coast.