SABIC AN awards 7th project contract for $3.47B

Logo of SABIC Agri-Nutrients Co. (SABIC AN) 

SABIC Agri-Nutrients Co. (SABIC AN) announced that its board of directors approved the final investment decision for its seventh project and awarded the engineering, procurement and construction (EPC) contract to Samsung E&A Ltd. for a total value of nearly $3.47 billion.

In a statement on Tadawul, the company said the project will comprise an industrial complex including an ammonia plant with an annual production capacity of 1.2 million metric tons, alongside two urea plants with a combined annual production capacity of 2.6 million metric tons and a carbon capture unit.

SABIC AN expects construction work to begin in Q4 2026, with commissioning scheduled to start in Q3 2030. The commissioning period will last four months, ahead of the start of commercial production and completion of the project in Q4 2030.

The project is expected to increase its urea production capacity from 4.8 million metric tons per annum (mmtpa) to 7.4 million mmtpa, an increase of 54% from current production levels.

The project will enhance the company’s competitiveness and sustainability by integrating advanced carbon capture technologies and reducing emissions intensity across its operations, helping reduce the carbon footprint of its products and supporting the company’s sustainability and net-zero targets.

SABIC AN added that the project is one of the key pillars of its 2040 strategy, which aims to strengthen the Kingdom’s position in the agricultural nutrients export market and support global food security, contributing to the objectives of Saudi Vision 2030.

The project’s financial impact will be reflected in the company’s results after completion and the start of commercial operations, the Saudi-listed firm indicated, adding that it will assess financing options, including loans and the company’s cash flows.

There are no related parties, and the company confirmed that it will announce any developments or material events related to the project as they occur.

According to Argaam data, the company received approval from the Ministry of Energy in March to allocate the feedstock required to establish its seventh plant in Jubail Industrial City, with production capacity equivalent to 1.2 mmtpa of conventional ammonia and 2.6 million mmtpa of urea.