SABIC Agri-Nutrients Greenlights $3.46 Billion Ammonia-Urea Complex, EPC Awarded to Samsung E&A

SABIC Agri-Nutrients Company has approved the Final Investment Decision (FID) for its new ammonia and urea complex in Jubail, Saudi Arabia, and awarded the approximately $3.46 billion Engineering, Procurement and Construction (EPC) contract to Samsung E&A.

The SAN-7 project represents a major expansion of SABIC Agri-Nutrients' nitrogen fertilizer production capacity. The integrated complex will include a 1.2 million metric tons per year (MMTPA) ammonia plant, two urea plants with a combined capacity of 2.6 MMTPA, and a post-combustion carbon capture unit.

Construction is expected to begin in the fourth quarter of 2026, with commissioning planned for the third quarter of 2030 and commercial production targeted for the fourth quarter of 2030.

$3.46 Billion EPC Contract Awarded to Samsung E&A

SABIC Agri-Nutrients awarded the EPC contract to South Korea's Samsung E&A for approximately $3.465 billion. Samsung E&A will carry out the project on a sole EPC basis, covering engineering, procurement and construction activities.

The contract was signed in September 2026 at SABIC's headquarters in Jubail. Samsung E&A said the project builds on its long-standing relationship with SABIC and its experience executing major industrial projects in Saudi Arabia.

The project is also significant for Samsung E&A's fertilizer business, as ammonia and urea facilities are among its established capabilities within the hydrocarbon and chemical sectors.

New Ammonia and Urea Production Capacity

The SAN-7 complex will consist of three major production components:

• Ammonia plant: 1.2 million metric tons per year

• Two urea plants: 2.6 million metric tons per year combined

• Post-combustion carbon capture unit: designed to capture carbon dioxide associated with the production process

The ammonia plant will use technology from Kellogg Brown & Root (KBR), while the two urea plants will use technologies from Stamicarbon and thyssenkrupp Uhde Fertilizer Technology. The carbon capture unit will utilize technology from Shell Global Solutions International.

SABIC Agri-Nutrients to Increase Urea Capacity by 54%

One of the most important impacts of the project will be the increase in SABIC Agri-Nutrients' urea production capacity.

The company currently has approximately 4.8 million metric tons per year of urea production capacity. Once SAN-7 is completed, this is expected to rise to approximately 7.4 million metric tons per year.

That represents an increase of around 54% compared with the company's current urea production capacity.

The expansion will strengthen SABIC Agri-Nutrients' position in the global nitrogen fertilizer market and add substantial new production capacity in Saudi Arabia.

Carbon Capture Included in the New Complex

The SAN-7 project is not limited to conventional ammonia and urea production. It also includes a post-combustion carbon capture unit.

Carbon capture can play an important role in reducing emissions associated with industrial ammonia production. In this project, carbon dioxide generated during ammonia production can be captured and utilized in the urea production process.

Samsung E&A said the carbon capture system will allow carbon dioxide from ammonia production to be reused for urea production, supporting greater process efficiency and reducing emissions.

Jubail Remains a Major Industrial Hub

The new complex will be developed in Jubail Industrial City in Saudi Arabia's Eastern Province, one of the Kingdom's major industrial and petrochemical centers.

The location provides the project with access to established industrial infrastructure, utilities, logistics networks and existing chemical manufacturing facilities.

SABIC Agri-Nutrients had previously received approval from Saudi Arabia's Ministry of Energy for the feedstock allocation required for the project. That approval was announced in March 2026 and covered feedstock for the planned 1.2 MMTPA ammonia and 2.6 MMTPA urea facilities.

Project Timeline

The project has now moved from the development stage into execution following SABIC Agri-Nutrients' approval of the Final Investment Decision.

Key milestones include:

The commissioning period is expected to last approximately four months before commercial operations begin.

What the Project Means for the Fertilizer Market

The SAN-7 project comes as fertilizer producers continue to invest in additional nitrogen production capacity. Ammonia and urea remain essential inputs for agricultural production, making new large-scale facilities strategically important for fertilizer supply.

For SABIC Agri-Nutrients, the project will significantly expand its urea capacity and provide additional ammonia production capability. The company has described the expansion as part of its longer-term growth strategy and its position as a major producer and exporter of nitrogen-based agricultural nutrients.

The project will also create demand across the engineering, equipment, construction and industrial supply chain as the facility moves into execution.

Samsung E&A Strengthens Its Saudi Fertilizer Portfolio

The SAN-7 award further strengthens Samsung E&A's presence in Saudi Arabia's large-scale industrial sector.

Samsung E&A entered the Saudi market in 2003 and has since executed major projects for SABIC and other industrial customers. The company said its previous work for SABIC includes major petrochemical projects involving ethylene oxide/ethylene glycol and polypropylene facilities.

Samsung E&A also highlighted modularization and automation as technologies it plans to apply in project execution.

Global Significance of the SAN-7 Project

The scale of SAN-7 makes it an important development for the global ammonia and urea industry. With 1.2 million tonnes per year of new ammonia capacity and 2.6 million tonnes per year of additional urea capacity, the project represents a substantial expansion of nitrogen fertilizer production.

At the same time, incorporating carbon capture into the complex reflects the growing focus on reducing the carbon intensity of ammonia and fertilizer production.

Once operational, the facility is expected to contribute significantly to Saudi Arabia's fertilizer production and export capabilities.

Conclusion

SABIC Agri-Nutrients' approval of the $3.46 billion SAN-7 ammonia and urea complex marks a major step forward in Saudi Arabia's fertilizer expansion plans.

The project will add 1.2 million tonnes per year of ammonia capacity and 2.6 million tonnes per year of urea capacity, while increasing SABIC Agri-Nutrients' overall urea production capacity from approximately 4.8 million to 7.4 million tonnes per year.

With Samsung E&A handling the EPC contract, construction scheduled to begin in Q4 2026 and commercial production targeted for Q4 2030, SAN-7 is set to become one of the major new fertilizer projects in Saudi Arabia. The inclusion of a post-combustion carbon capture unit also adds an important emissions-management component to the development.

Source: SABIC Agri-Nutrients, Saudi Exchange, Samsung E&A