September 14 International Fertilizer and Agricultural News

Strait of Hormuz Vessel Movements, Thursday 10:00: Windward Data

Vessel traffic through the Strait of Hormuz fell to a one-week low on Thursday as Iran continued enforcement operations targeting shipping in the southern lane.

According to vessel-tracking firm Windward, there were 10 transits through the strait on Thursday. Four vessels entered the strait via the US-coordinated southern lane, while two inbound vessels used the northern lane controlled in practice by Iran. Windward data also showed that the remaining four movements were outbound, with all but one using the southern lane.

That was the lowest single-day traffic level since September 4, representing only about 7.5% of the volume recorded before the joint US-Israel strikes on Iran and the subsequent declaration that the strait had been closed. According to the United Kingdom Maritime Trade Operations, Iran has stepped up harassment of vessels using the southern lane.

SABIC Agri-Nutrients Approves Final Investment Decision for New Urea and Ammonia Project

The board of Saudi fertilizer producer SABIC Agri-Nutrients (SABIC AN) has approved a final investment decision for a new 2.6 million tonne per year urea plant, with commercial production targeted for the fourth quarter of 2030.

According to a stock exchange announcement, the project includes a 1.2 million tonne per year ammonia unit and a post-combustion carbon capture unit. Construction is scheduled to begin in the fourth quarter of this year. Once the new plant comes online, SABIC AN's annual urea capacity will rise from 4.8 million tonnes to 7.4 million tonnes, an increase of slightly more than 50%.

Saudi Arabia's Ministry of Energy approved the project's natural gas feedstock allocation at the end of March. SABIC AN is the kingdom's sole urea supplier, with its existing production and loading facilities located mainly in Jubail. Because of the Middle East conflict, the company has activated the Red Sea port of Yanbu as an alternative loading point.

Most of the company's urea output is exported, with Argus estimating exports of 4.1 million to 4.2 million tonnes last year. Argus data show that in early March SABIC AN announced plans to integrate the Ibn Al-Baytar plant into its existing portfolio, adding nearly 500,000 tonnes per year of urea capacity and bringing total capacity at that time to slightly more than 4.8 million tonnes per year.

Excluding Iran, two other large urea projects in the Gulf region are scheduled for completion before 2030. QatarEnergy plans a new integrated complex that would double its urea capacity to 12.4 million tonnes per year. The engineering, procurement and construction contract for SABIC AN's new project, valued at $3.5 billion, has been awarded to Samsung Group.