Samsung E&A has landed another Saudi megaproject, and this one comes with plenty of equipment attached.
SABIC Agri-Nutrients has approved the final investment decision for its seventh ammonia and urea project and awarded Samsung E&A the engineering, procurement and construction scope at a value of approximately $3.465 billion. Construction is expected to begin in Q4 2026, with commissioning planned from Q3 2030 and commercial production targeted for Q4 2030.
For contractors and suppliers, the headline number matters. But the more interesting question is where that $3.5 billion will actually be spent.
A very large fertilizer complex
SAN-7 will consist of a 1.2 million tonne-per-year ammonia plant and two urea plants with combined production capacity of 2.6 million tonnes per year. A post-combustion carbon capture unit will also be integrated into the development.
Once operational, the project is expected to increase SABIC Agri-Nutrients’ total urea capacity from 4.8 million tonnes per year to 7.4 million tonnes, a jump of approximately 54%.
That makes SAN-7 considerably more than another capacity addition. It is effectively a new integrated production complex built around three major process areas, ammonia, urea and carbon capture, plus the utilities and offsites needed to keep everything running.
The technology lineup also tells suppliers where some of the spending will concentrate. The ammonia plant will use KBR technology, while the urea facilities will incorporate technology from Stamicarbon and thyssenkrupp Uhde Fertilizer Technology. Shell Global Solutions technology has been selected for the carbon capture unit.
Where the money goes
Based on EPCIntel’s database of comparable large ammonia and fertilizer EPC projects, an indicative breakdown of Samsung E&A’s $3.465 billion scope could look roughly like this:
- Ammonia process plant: 25 to 30%, approximately $870 million to $1.04 billion
- Urea production and finishing: 20 to 25%, approximately $690 million to $865 million
- Carbon capture facilities: 5 to 8%, approximately $175 million to $275 million
- Utilities and offsites: 15 to 20%, approximately $520 million to $690 million
- Electrical, instrumentation and automation: 7 to 10%, approximately $240 million to $350 million
- Civil works, structures and buildings: 6 to 9%, approximately $210 million to $310 million
- Construction, commissioning and EPC indirect costs: approximately 10 to 15%
These are indicative EPCIntel estimates rather than disclosed SAN-7 package values, but they show why the project should generate a substantial downstream procurement pipeline.
Suppliers should be watching now
The obvious opportunities include compressors, reformer systems, heat exchangers, reactors, pressure vessels, boilers, pumps, valves and large quantities of piping.
Then there is the electrical and instrumentation scope, including substations, switchgear, transformers, distributed control systems, analyzers, telecommunications and safety systems.
The carbon capture plant adds another procurement layer involving absorbers, regeneration equipment, large columns, compressors, heat integration equipment and CO2 handling systems.
Samsung E&A also has a well-established Saudi execution base and says it is pursuing in-Kingdom procurement and construction strategies, making local fabrication, construction and specialist subcontracting particularly relevant as the project moves into detailed engineering and procurement.
The bigger Saudi fertilizer push
SAN-7 fits neatly into Saudi Arabia’s effort to extract more value from its gas resources while strengthening its position in global fertilizer exports.
For SABIC Agri-Nutrients, the development is a major capacity expansion. For Samsung E&A, it adds another multibillion-dollar Saudi EPC project to an already substantial Middle East portfolio.
For the supply chain, however, the important part starts now.
With construction due to begin in Q4 2026 and commercial production scheduled for late 2030, procurement for rotating equipment, static equipment, bulk materials, electrical systems, instrumentation and construction packages should create a sizeable four-year opportunity across Saudi Arabia and the international fertilizer supply chain.
