Samsung E&A Awarded US$3.465 Billion EPC Contract for Ammonia-Urea Project in Saudi Arabia

en.Wedoany.com Reported - On September 9, the board of directors of SABIC Agri-Nutrients, a subsidiary of Saudi Basic Industries Corporation (SABIC), approved the final investment decision (FID) for its seventh ammonia-urea project and awarded the engineering, procurement, and construction (EPC) contract to Samsung E&A, with a total contract value of approximately US$3.465 billion. The project is located in Jubail Industrial City, Saudi Arabia, and will build one 1.2 million tonnes per year conventional ammonia unit, two urea units with a combined capacity of 2.6 million tonnes per year, and one post-combustion carbon capture unit. Construction is scheduled to commence in the fourth quarter of 2026.

The project had previously obtained feedstock allocation approval from the Saudi Ministry of Energy in March 2026, at which time SABIC Agri-Nutrients confirmed the project site as Jubail Industrial City and defined it as the company's seventh agri-nutrients production facility. The board's approval of the FID and the completion of the EPC award have now moved the project from the feedstock security and investment preparation stage into the engineering construction implementation stage.

The project's technology route has also been determined. The 1.2 million tonnes per year ammonia unit will adopt Kellogg Brown & Root (KBR) technology; the two urea units with a combined annual capacity of 2.6 million tonnes will adopt urea processes from Stamicarbon and thyssenkrupp Uhde Fertilizer Technology; and the associated post-combustion carbon capture unit will adopt Shell Global Solutions International technology. Samsung E&A will be responsible for the EPC implementation of the above units and related utilities and infrastructure.

According to the current schedule, construction is planned to commence in the fourth quarter of 2026, with trial operation scheduled to begin in the third quarter of 2030. The trial operation period is expected to last 4 months, after which commercial production will commence in the fourth quarter of 2030 and project construction will be completed.

After the project is commissioned, SABIC Agri-Nutrients' annual urea production capacity will increase from the current approximately 4.8 million tonnes to 7.4 million tonnes, an increase of approximately 54%. The additional 2.6 million tonnes per year of urea capacity will be provided by two new units and will form an integrated production configuration with the new 1.2 million tonnes per year ammonia unit.

Regarding financing arrangements, SABIC Agri-Nutrients stated that it will evaluate multiple financing methods, including bank loans and the company's own cash flow. The project's financial impact is expected to be reflected in the company's financial performance after construction is completed and commercial operation begins. There are no related parties in this transaction.

The project also includes an independent post-combustion carbon capture unit, which is incorporated into the overall EPC scope and will be constructed in parallel with the ammonia and urea units. SABIC Agri-Nutrients has made clear that the carbon capture facility will be used to reduce the emission intensity during project operation.

Prior to this FID, SABIC Agri-Nutrients obtained formal feedstock allocation approval from the Saudi Ministry of Energy for the seventh project on March 25, and disclosed the project's planned capacity to the public on March 26.