Samsung E&A has secured a $3.5 billion fertilizer plant project in Saudi Arabia, reinforcing its position as a major player in the Middle East’s chemical engineering and construction market.
Samsung E&A said on Sept. 11 that it had signed an EPC (engineering, procurement and construction) contract with SABIC Agri-Nutrients for the SAN-7 project. The company will carry out the project on a standalone basis, with completion scheduled for 2030.
The contract signing ceremony was held on Sept. 9 at SABIC’s headquarters in Jubail, Saudi Arabia. Samsung E&A President Namkoong Hong attended the ceremony along with senior executives from SABIC and SABIC Agri-Nutrients, including Dr. Faisal Mohammed Al-Faqeer, Abdulrahman Al-Fageeh and Fahad Misfer Al-Battar.
The project will involve the construction of a fertilizer production complex in the Jubail Industrial City in eastern Saudi Arabia. The facility will use natural gas to produce 3,500 metric tons of ammonia per day and convert it into 7,700 metric tons of urea fertilizer per day. All of the urea produced at the plant will be exported.
The plant will also incorporate a post-combustion carbon capture (PCCC) system. Carbon dioxide generated during ammonia production will be captured and reused in the urea synthesis process, helping reduce carbon emissions while improving resource efficiency and project economics.
The latest contract further expands Samsung E&A’s presence in Saudi Arabia, where it first entered the market in 2003 and has since completed more than 30 projects. The company secured its largest-ever project in 2024, winning a $6 billion contract for the Fadhili project.
Industry observers say Samsung E&A’s extensive experience in Saudi Arabia and its track record in the Jubail Industrial City give it an advantage in executing large-scale projects. The company has previously completed multiple projects in the industrial complex, giving it familiarity with local infrastructure and operating conditions.
The project also strengthens Samsung E&A’s long-standing relationship with SABIC. Since 2003, the company has carried out major petrochemical projects for SABIC, including facilities related to ethylene oxide/ethylene glycol (EO/EG) and polypropylene (PP). Its previous project performance and ability to shorten construction schedules are seen as key factors behind its latest contract with SABIC’s fertilizer subsidiary.
Ammonia and urea plants are among Samsung E&A’s core chemical engineering offerings. The company is also currently involved in a low-carbon ammonia project in the United States, expanding its capabilities in the sector.
The fertilizer market is expected to see continued investment over the longer term as global food demand rises and countries place greater emphasis on food security and supply-chain stability. Samsung E&A plans to differentiate its project execution through technologies such as modularization and automation.
The Saudi contract also adds momentum to Samsung E&A’s overseas order intake this year. The company won a $2.4 billion overseas chemical project in February and a $790 million water treatment project in the Middle East in June.
Samsung E&A is also bidding for several fertilizer and gas projects in Saudi Arabia and Qatar, raising expectations for additional orders in the Middle East.
“Given that this is a project in our home market of Saudi Arabia, for a client with whom we have a long-standing relationship, and in one of our core product areas, it holds particular significance,” a Samsung E&A official said. “We will leverage our technology and experience to successfully execute the project and respond proactively to growing global demand for fertilizer plants.”
