Plant Construction Asia, Middle East to Spearhead Global Ammonia Capacity Additions by 2026

Editor: Ahlam Rais

A Global Data report mentions that around 100 plants are expected to be launched in Asia as well as the Middle East in the next nine years. Within Asia, India aims to add a total capacity of approximately 8.6 mtpa by 2026.

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Global planned capacity additions in the ammonia industry by top 10 countries.
Global planned capacity additions in the ammonia industry by top 10 countries.
(Source: Global Data)

UK – Global ammonia capacity is expected to experience considerable growth between 2017 and 2026, increasing from 230 million tonnes per annum (mtpa) in 2017 to more than 280 mtpa by 2026, led by Asia and the Middle East, according to Global Data, a leading data and analytics company.

The company’s report: ‘Q4 2018 Global Ammonia Capacity and Capital Expenditure Outlook – Dangote Industries Ltd and Nagarjuna Fertilizers Lead Global Capacity Additions’ reveals that around 100 planned and announced plants are scheduled to come online, predominantly in Asia and the Middle East, over the next nine years.

Within Asia, India plans to add a total capacity of approximately 8.6 mtpa by 2026 with the help of 18 planned and announced ammonia plants. Major capacity additions will be from Nagarjuna Fertilizers and Chemicals and Rashtriya Chemicals and Fertilizers.

Global Data identifies the Middle East as the second highest in terms of ammonia capacity additions. Within the region, Iran has 21 planned and announced ammonia plants, with a total capacity of 8.4 mtpa by 2026. In Africa, Nigeria plans to spend 7.21 billion dollars and add capacity of roughly 6.6 mtpa, expected to come onstream by 2026.

The US has nine planned and announced ammonia plants, with a capacity of around 3.1 mtpa over the next nine years, and plans to spend 3.23 billion dollars. Major capacity additions will be from Cronus Corporation and Ohio Valley Resources.

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In the Former Soviet Union (FSU), most ammonia capacity additions are in Russia, with capacity of approximately 2.9 mtpa by 2026. Capex for these plants totals 1.95 billion dollars by 2026. MCC Euro Chem is the top company accounting for the major capacity additions in Russia.

In South America, the major ammonia capacity additions are in Peru, with planned and announced capacity additions of around 0.9 mtpa by 2026. Capex for these plants totals 0.76 billion dollars. In Europe, Hungary plans to spend 24.0 million dollars and add capacity of 0.1 mtpa, expected to come onstream by 2026.

The report states that Dangote Industries and Nagarjuna Fertilizers and Chemicals leads among the key companies in terms of global capacity additions, with an estimated capacity addition of 2.9 mtpa (3 plants) and 2.0 mtpa (4 plants) respectively.

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