SABIC Agri-Nutrients Company (SABIC AN), the Saudi-listed fertilizer producer majority-owned by SABIC, has announced a significant revision to its expansion plans in Jubail Industrial City, pivoting from a planned low-carbon ammonia project to a larger conventional ammonia and urea facility. The decision follows the receipt of Ministry of Energy approval for feedstock allocation to support the new configuration of the company’s seventh production complex.
Scale Over Carbon: A Strategic Calculation
Under the original blueprint disclosed in July 2024, the new Jubail complex was set to produce 1.2 million metric tonnes per annum (MMTA) of low-carbon blue ammonia alongside 1.1 MMTA of urea and specialised agri-nutrients. The revised plan replaces that configuration with a facility producing the same 1.2 MMTA of conventional ammonia but expanding the urea component dramatically to 2.6 MMTA — more than doubling the urea output from the initial design.
The impact on SABIC AN’s overall urea production footprint is substantial: total capacity will grow from approximately 4.8 MMTA to around 7.4 MMTA, representing an increase of roughly 54 percent. For a company whose revenues grew 18 percent year-on-year to SAR 13.08 billion in 2025, and whose net profit climbed 30 percent to SAR 4.32 billion during the same period, the expansion underscores a clear confidence in the long-term demand trajectory for fertilizers in global agricultural markets.
What the Pivot Means for Saudi Industry
The shift from blue to conventional ammonia reflects a broader reassessment that several Gulf petrochemical producers have made in response to evolving project economics. Blue ammonia — produced with carbon capture — carries higher capital and operational costs, and the economics depend heavily on the carbon credit market and policy environment. The conventional ammonia-urea combination offers a more straightforward, financially robust path to capacity growth, particularly given the rising global demand for food security solutions.
For Jubail Industrial City, the revised complex will add to an already dense cluster of world-class petrochemical and fertilizer facilities. SABIC AN said further material announcements — including the Final Investment Decision (FID) and Engineering, Procurement and Construction (EPC) contract awards — will follow as the project progresses. The eventual project will add significant tonnage to Saudi Arabia’s position as one of the world’s leading fertilizer exporters and reinforce the kingdom’s role in supporting global agricultural supply chains.
