Samsung E&A has secured an engineering, procurement and construction (EPC) contract worth Won4.7tn ($3.5bn) for a large-scale fertiliser project in Saudi Arabia.
The company disclosed it had signed the agreement with SABIC Agri-Nutrients Company (SABIC AN) for the SAN-7 project.
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Under the contract, Samsung E&A will oversee all EPC works, with completion scheduled for 2030.
The SAN-7 project involves constructing an industrial complex within the Jubail Industrial Complex in eastern Saudi Arabia.
The facility will use natural gas to produce 3,500 metric tonnes of ammonia a day, which will in turn be used to manufacture 7,700 metric tonnes of urea fertiliser a day. All urea fertiliser from the site is intended for export.
Advanced features include a post-combustion carbon capture (PCCC) system, enabling carbon dioxide generated by ammonia production to be used in urea synthesis to reduce emissions and improve efficiency.
Senior representatives from both companies, including Samsung E&A president and CEO Hong Namkoong and several SABIC executives, attended a signing ceremony at SABIC’s headquarters in Jubail.
Namkoong said: “This project involves a core product for a long-standing client and is being executed in Saudi Arabia, a key market for us.
“We plan to actively respond to the growing global demand for fertiliser plants by successfully delivering the project through the integration of our technical expertise and experience.”
Following approval of the project’s final investment decision by the SABIC AN Board of Directors, the planned complex will include an ammonia plant with an annual capacity of 1.2 million metric tonnes, using technology from Kellogg Brown & Root.
It will also house two urea plants with a combined annual capacity of 2.6 million metric tonnes, employing processes from Stamicarbon and thyssenkrupp Uhde Fertilizer Technology, plus a carbon capture unit using Shell Global Solutions International technology.
Once operational, SABIC AN’s total urea production capacity will rise by 54%, increasing from 4.8 million metric tonnes to 7.4 million metric tonnes a year.
SABIC AN CEO Fahad Al-Battar said: “Through this expansion project, we aim to secure reliable and sustainable supplies for our customers, maximise value for our shareholders, contribute to realising the goals of Saudi Vision 2030, and support global food security.”
Commissioning is expected in the third quarter of 2030, with commercial operations planned for the fourth quarter.
Samsung E&A has operated in Saudi Arabia since 2003, completing more than 30 projects, including the recent $6bn Fadhili development.
The company previously carried out projects for SABIC, contributing to its selection for the SAN-7 Project.
