9 July 2026, 11:20 UTC

SABIC Agri-Nutrients Nears FID on Seventh Ammonia and Urea Plant

SABIC Agri-Nutrients is preparing to take a final investment decision on its seventh ammonia and urea plant, projected to lift sales volumes by about 54 percent. The facility would add 1.2 million mtpa of ammonia and roughly 2.6 million mtpa of urea, according to ChemAnalyst.

SABIC Agri-Nutrients Company (SABIC AN), a leading fertilizer producer in Saudi Arabia and majority-owned by SABIC with a 50.1 percent stake, is preparing to take a Final Investment Decision (FID) on a planned seventh ammonia and urea production facility, according to ChemAnalyst. The move extends the company's strategy of expanding nitrogen fertilizer capacity and reinforcing Saudi Arabia's role among the major global suppliers.

Seventh plant to lift sales volumes by about 54 percent

The seventh facility will have the capacity to produce 1.2 million metric tonnes per annum (mtpa) of conventional ammonia and approximately 2.6 million mtpa of urea, ChemAnalyst reported. Chief Executive Officer Fahad Albattar told Arabic financial platform Argaam that the new project is projected to increase SABIC AN's sales volumes by approximately 54 percent, reflecting the company's expectations for continued demand for ammonia and urea in agricultural fertilizers and industrial applications.

For importers of nitrogen fertilizers, additional Saudi urea and ammonia capacity is significant because the Kingdom is already one of the leading exporters of nitrogen-based products. New tonnage aimed at export markets would expand the supply available to buyers across agricultural regions that rely on imported urea.

Feedstock secured in March

A key milestone was reached in March, when Saudi Arabia's Ministry of Energy approved the allocation of the feedstock required for the facility. Feedstock allocation is a critical step for petrochemical and fertilizer projects because it secures the raw materials needed for long-term operation. With that approval in hand, SABIC AN is moving closer to finalizing the investment decision and beginning the next stages of project development.

Sixth plant targets low-carbon blue ammonia

Alongside the seventh plant, SABIC AN is advancing a sixth production facility in Jubail Industrial City. Unlike the seventh plant's conventional output, the sixth facility is designed to produce 1.2 million mtpa of low-carbon blue ammonia, aligning with efforts to lower carbon emissions relative to traditional production.

The blue ammonia project remains dependent on securing a long-term offtake agreement. Albattar said the company is prepared to proceed with construction once a suitable long-term buyer agreement is finalized, and that the project would move forward if such an agreement is signed during the current year or the following year. Like the seventh project, the sixth plant received feedstock allocation approval from the Ministry of Energy in March. The Jubail facility is expected to support Saudi Arabia's ambition to become a leading global producer and exporter of low-carbon hydrogen derivatives, including blue ammonia.

Costs and timelines not yet disclosed

SABIC AN has released production capacities and technical details for both the sixth and seventh plants but has not disclosed the total investment value of either project, according to ChemAnalyst. Further information on project costs, construction schedules, and commissioning timelines is expected after key commercial decisions and agreements are finalized.

Seventh plant: 1.2 million mtpa conventional ammonia and approximately 2.6 million mtpa urea; projected to raise sales volumes by about 54 percent.
Sixth plant: 1.2 million mtpa low-carbon blue ammonia in Jubail Industrial City, pending a long-term offtake agreement.
Both projects received feedstock allocation approval from the Ministry of Energy in March.

Taken together, the two projects position SABIC AN for growth in both conventional fertilizers and low-carbon ammonia, in line with Saudi Arabia's broader industrial and energy diversification goals.

Expert commentary

“SABIC AN is going big on nitrogen. The seventh plant alone adds 1.2 million tonnes of ammonia and about 2.6 million tonnes of urea a year, and the CEO says it lifts the company's sales volumes by roughly 54 percent. That is a single project raising output by more than half — a serious volume of new tonnage aimed largely at export markets.

For urea importers this matters. Saudi Arabia is already one of the top nitrogen exporters, and 2.6 million tonnes of extra urea is a meaningful chunk of new supply for buyers in agricultural regions that depend on imports. More Saudi tonnage on the water tends to cap prices, especially if it lands when Chinese exports are restricted. The feedstock allocation was approved in March, so the biggest gating item — cheap gas — is already secured, which is why FID is close.

The sixth plant is a different bet: 1.2 million tonnes of low-carbon blue ammonia, but it does not move until someone signs a long-term offtake deal. That tells you where the two markets stand. Conventional urea and ammonia demand is real enough to sanction a plant now; blue ammonia still needs a committed buyer before anyone pours concrete. No investment figures have been disclosed for either, so the capital picture stays open until commercial terms are locked.”

Rajesh Nair

Chemicals & Fertilizers Analyst