SABIC AN Awards $3.5 Billion EPC Contract for Jubail Complex

12 Sep 2026 · Construction

StatusConfirmed by the company in a statement to the Saudi stock exchange.

SABIC Agri-Nutrients Company (SABIC AN) has awarded an engineering, procurement, and construction (EPC) contract valued at $3.5 billion to Samsung E&A. The contract is for the development of an industrial complex in Jubail Industrial City, which will produce ammonia and urea. The decision to award the contract followed the board's approval of the final investment decision for SABIC AN's seventh project. The complex will feature an ammonia plant with an annual production capacity of 1.2 million metric tonnes, two urea plants with a combined capacity of 2.6 million metric tonnes, and a carbon capture unit. Construction is set to commence in the fourth quarter of 2026, with commissioning planned for the third quarter of 2030, lasting four months. Commercial production is expected to begin in the fourth quarter of 2030. The project aims to increase urea production capacity by 54 percent, reaching 7.4 million metric tonnes per year. SABIC AN is currently evaluating financing options, including loans and cash flows, to support the project.

Why this mattersThis development could influence the supply chain and material costs for projects in Madinah, particularly those involving ammonia and urea. The increased production capacity may lead to more competitive pricing and availability of these materials, potentially benefiting local construction and development projects. Additionally, the involvement of Samsung E&A could introduce new engineering and procurement practices that might be applicable to other projects in the region.

Key figures$3.5 billion · 1.2 million metric tonnes ammonia · 2.6 million metric tonnes urea · start Q4 2026 · commissioning Q3 2030 · production Q4 2030 · 54% increase in urea capacity

Source: Zawya

All news →