Saudi Arabia Boosts Urea Production Capacity by 54%
· Tarım Pusulası
SABIC Agri-Nutrients and Samsung E&A signed a $3.5 billion contract for the SAN-7 project, which will increase annual urea production capacity in Saudi Arabia to 7.4 million tons.
Samsung E&A and SABIC Agri-Nutrients have signed a massive $3.5 billion engineering, procurement, and construction contract for the SAN-7 project, which will be realized in Saudi Arabia's Jubail Industrial City. Under this agreement, valued at approximately 4.7 trillion South Korean won, Samsung E&A will solely manage all EPC works for the project. The integrated ammonia and urea production complex, which will use natural gas as feedstock, aims to export all of its produced fertilizer to international markets. This strategic step symbolizes a significant capacity increase that will impact the global fertilizer supply balance.
According to the official statement from SABIC, the new facility will produce 3,500 tons of ammonia and 7,700 tons of urea daily. Thanks to two new lines integrated with a unit having an annual ammonia capacity of 1.2 million tons, the company's annual urea production capacity will increase by 2.6 million tons. Consequently, the company's current total urea capacity of 4.8 million tons will rise by 54% to reach 7.4 million tons. This substantial production increase will provide critical security in the supply of nitrogenous fertilizers, a key input for global agricultural production.
One of the most significant technical features of the project is the post-combustion carbon capture system that utilizes the carbon dioxide generated during ammonia production in urea synthesis. According to the project timeline, construction activities are planned to commence in the fourth quarter of 2026, with trial operations scheduled to begin in the third quarter of 2030. Commercial production is expected to start in the fourth quarter of 2030, following a comprehensive testing period of approximately four months. This investment, aiming for high efficiency and low emissions, seeks to set new standards in the modern agricultural inputs market.
| Value | Period | Measure |
|---|---|---|
| 3.5 billion $ | — | Contract value |
| 4.7 trillion South Korean won | — | Contract value (local currency) |
| 3500 tonnes | — | Daily ammonia production |
| 7700 tonnes | — | Daily urea production |
| 2.6 million tonnes | 2030 | Annual additional urea capacity |
| 4.8 million tonnes | — | Current annual urea capacity |
| 7.4 million tonnes | 2030 | Target total annual urea capacity |
| 54% | 2030 | Urea capacity increase rate |
| 1.2 million tonnes | 2030 | New plant annual ammonia capacity |