Samsung E&A Co., Ltd. (Seoul, South Korea) signed an Engineering, Procurement and Construction (EPC) contract with Saudi Arabia’s SABIC Agri-Nutrients Co. (Jubail, Saudi Arabia) for the SAN-7 Project. The contract is worth KRW 4.7 trillion (about USD 3.5 billion), and Samsung E&A will exclusively carry out the EPC, with completion scheduled for 2030.
The signing ceremony, held on the afternoon of Sept. 9 (local time) at SABIC’s headquarters in Jubail, Saudi Arabia, was attended by top executives from the respective companies, including Samsung E&A President and CEO Hong Namkoong, SABIC President Dr. Faisal Mohammed Al-Faqeer, and SABIC Agri-Nutrients Chairman Abdulrahman Al-Fageeh and President Fahad Misfer Al-Battar.
Hong Namkoong, President and CEO of Samsung E&A, said, “This project involves a core product for a long-standing client and is being executed in Saudi Arabia, a key market for us,” adding, “We plan to actively respond to the growing global demand for fertilizer plants by successfully delivering the project through the integration of our technical expertise and experience.”
The plant, being constructed in the Jubail Industrial Complex in eastern Saudi Arabia, will use natural gas as feedstock to produce 3,500 metric tons of ammonia daily, which will then be used to manufacture 7,700 metric tons of urea fertilizer; all urea fertilizer output is destined for export. Notably, the facility incorporates a Post-Combustion Carbon Capture (PCCC) system, allowing the CO2 generated during ammonia production to be utilized in urea synthesis, thereby reducing carbon emissions and enhancing economic efficiency.
Samsung E&A has further strengthened its market dominance in Saudi Arabia by winning this contract. Having first entered the Saudi market in 2003 and executed over 30 projects, the company has firmly cemented its position as a leader in the Saudi plant sector — a status underscored by securing the USD 6 billion Fadhili project in 2024, the largest in its history. Notably, Samsung E&A possesses extensive experience with multiple projects in the Jubail Industrial Complex, where this new project will take place; this background fosters expectations for stable project execution through the effective utilization of existing infrastructure and resources.
Samsung E&A has further solidified its partnership with SABIC, Saudi Arabia’s leading petrochemical company. The client for this project, SABIC Agri-Nutrients, is a national champion in fertilizers and a global leader in the nitrogenous market. Having successfully executed major petrochemical projects for SABIC — such as those involving EO/EG and PP — since 2003, Samsung E&A was awarded the SAN-7 Project in recognition of its proven performance and achievements, including the ability to shorten construction schedules.
Building on its experience in Saudi Arabia, client trust, and competitive product capabilities, Samsung E&A plans to successfully execute this project. Ammonia and urea plants are among the company’s core offerings in the hydrocarbon sector; notably, Samsung E&A is currently executing a low-carbon ammonia project in the United States. Investment in fertilizer projects is expected to rise steadily in the future, driven by factors such as the structural growth of global food demand, the emergence of food security concerns, and risks associated with global supply chains. In addition to these strengths, Samsung E&A plans to differentiate its project execution by applying innovative technologies, such as modularization and automation.
Samsung E&A’s streak of overseas contract wins is also noteworthy. The company secured a USD 2.4 billion overseas hydrocarbon project in February and a USD 790 million water treatment project in the Middle East in June; it has continued this momentum with the recent fertilizer project. Furthermore, with multiple projects — including fertilizer and gas facilities — currently under bid in the Middle East (such as in Saudi Arabia and Qatar), expectations for additional contract wins are rising.