Saudi Fertilizer Contract
Samsung E&A secures $3.5 billion Saudi contract to build a major fertilizer complex.
Anonymous
Key Points
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Samsung E&A is handling the EPC work alone, rather than as part of a consortium. The contract-signing ceremony was held at SABIC’s headquarters in Jubail and was attended by senior executives from both companies, including Samsung E&A President Namkoong Hong and SABIC President Faisal Mohammed Al-Faqeer.
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Samsung E&A entered the Saudi market in 2003 and has completed more than 30 projects there, including work in Jubail Industrial City—experience the company cited as a basis for carrying out the SAN-7 project smoothly.
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The SAN-7 award follows Samsung E&A’s $6 billion Fadhili gas project in 2024, described as the largest project in the company’s history, further reinforcing its standing in Saudi Arabia’s plant-construction market.
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The company has also expanded its overseas order book during the year with a $2.4 billion chemical-plant project secured in February and a $790 million Middle East water-treatment project won in June.
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Including work performed by its headquarters and Saudi subsidiary, the SAN-7 contract is scheduled to run from October 2026 through December 2030 and covers not only the ammonia and urea facilities but also related utilities.
Samsung E&A has won a $3.5 billion contract to build a massive fertilizer plant in Saudi Arabia. GasWorld reported that SABIC Agri-Nutrients awarded the engineering, procurement, and construction deal for the SAN-7 project in Jubail Industrial City. The plant will produce 3,500 tons of ammonia and 7,700 tons of urea fertilizer daily starting in 2030, with all output destined for export.
This contract marks a major win for Samsung E&A, equivalent to 27.5% of the company's annual sales. Yahoo Finance noted the deal runs from October 2026 through December 2030 and includes a carbon-capture system that recycles emissions from ammonia production into urea, boosting efficiency and cutting environmental impact.
Samsung Expands Dominance in Saudi Arabia's Petrochemical Market
Samsung E&A is handling the entire SAN-7 project solo, not as part of a team with other contractors. The company has deep roots in Saudi Arabia, having entered the market in 2003 and completed over 30 projects there. Oil & Gas Middle East reported the contract was signed at SABIC's headquarters in Jubail, with senior executives from both companies in attendance.
This award comes on the heels of Samsung E&A's $6 billion Fadhili gas project in 2024, which the company called its largest-ever project. Combined with earlier wins—a $2.4 billion chemical plant in February and a $790 million water-treatment project in June—Samsung E&A has dramatically expanded its order book this year.
How the SAN-7 Plant Will Produce and Reduce Emissions
The fertilizer complex in Jubail will use natural gas to fuel production of both ammonia and urea. The innovation lies in its post-combustion carbon-capture system, which captures carbon dioxide from ammonia production and recycles it into urea synthesis. This loop reduces overall emissions while boosting output efficiency in a single, integrated process.
All fertilizer output from SAN-7 will be exported to global markets, not sold domestically. The plant will also include related utilities and infrastructure to support the ammonia and urea facilities. The entire project, including work by Samsung E&A's headquarters and Saudi subsidiary, spans from October 2026 to December 2030.
A Strategic Bet on Middle Eastern Energy and Agriculture
The SAN-7 contract signals Samsung E&A's confidence in Saudi Arabia's continued investment in petrochemicals and fertilizers. SABIC Agri-Nutrients chose Samsung E&A over consortium bids, trusting the company's three-decade track record in the kingdom. The project also positions Samsung to tap growing global demand for fertilizers as agriculture expands worldwide.
For Samsung E&A, this deal reinforces its status as a top-tier EPC contractor in the Middle East. With $3.5 billion in new work locked in and a backlog of major projects, the company has secured consistent revenue through 2030. The contract demonstrates that Korean engineering firms can compete head-to-head with global giants in the region's highest-stakes projects.
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