SABIC Agri-Nutrients has approved the Final Investment Decision (FID) for its large-scale ammonia and urea fertilizer plant, “SAN-7,” at the Jubail Industrial City in Saudi Arabia, and awarded the Engineering, Procurement and Construction (EPC) contract to Samsung E&A. The contract signing ceremony took place on September 9, with the news reported by industry outlets between September 11 and 12.
The SAN-7 project involves adding a new production line to SABIC Agri-Nutrients’ existing fertilizer complex at the Jubail Industrial City in Saudi Arabia’s Eastern Province. Samsung E&A will oversee the entire EPC process, and the plant will incorporate a Post-Combustion Carbon Capture (PCCC) system to capture carbon emitted during production, designed as a low-carbon facility. The specific process technology licensor has not been disclosed.
The contract value is reported at approximately $3.47 billion (reported as roughly KRW 4.7 trillion). The plant will be built with a capacity of 3,500 tonnes per day of ammonia and 7,700 tonnes per day of urea, with a target completion date of 2030.
Through SAN-7, SABIC Agri-Nutrients appears to be both expanding production capacity at its existing Jubail fertilizer complex and incorporating low-carbon processes to respond to tightening international environmental regulations such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). Saudi Arabia is seeking to maintain its position as the world’s leading fertilizer exporter by leveraging its competitive edge in fertilizer production based on low-cost natural gas feedstock.
This contract represents a case in which a Korean EPC contractor secured a major award amid intense competition for large-scale fertilizer and ammonia plant orders across the Middle East, aligning with a broader trend of low-carbon ammonia and fertilizer facility investment recently seen in Saudi Arabia, the UAE, and elsewhere in the region. Fertilizer plants combining carbon capture facilities are likely to become a standard design direction for Middle Eastern producers with an eye on European exports going forward, which is expected to generate new demand for PCCC equipment and catalyst suppliers as well. At the same time, for EPC contractors, construction experience with carbon capture facilities is emerging as a key competitive capability that will shape future project wins in similar fields. As expansion competition intensifies among Middle Eastern fertilizer producers, concerns over global oversupply of urea and ammonia have also been raised.
Attention will focus on whether Samsung E&A’s detailed engineering and equipment procurement schedule proceeds as planned, and when the specific technology licensor for the PCCC system will be disclosed. Given the 2030 completion target, the timing of the groundbreaking ceremony and whether long-term supply contracts (including possible LSTK arrangements) for major equipment are signed will also need to be confirmed. It also remains to be seen whether SABIC will announce further fertilizer plant expansions after SAN-7, and whether competition among Korean and other global EPC contractors for similar projects in Saudi Arabia will intensify.