Fertiglobe delays final investment decision on Project Rabdan

15 August 2025

UAE-based fertiliser producer Fertiglobe has delayed the final investment decision (FID) on its planned low‑carbon hydrogen and ammonia production facility in Abu Dhabi – Project Rabdan.

The Rabdan complex will use natural gas supplied by Abu Dhabi National Oil Company (Adnoc) – Fertiglobe’s parent company and majority shareholder – to produce up to 1 million tonnes a year (t/y) of low‑carbon liquid ammonia, also known as blue ammonia.

Located in Ruwais, the Rabdan facility will also have the capacity to produce 192,000 t/y of blue hydrogen and 892,000 t/y of nitrogen for supply to a local offtaker.

In its Q2 and H1 2025 financial results announcement, Fertiglobe stated that it had decided to “rephase Project Rabdan”.

“While Fertiglobe remains dedicated to advancing its low-carbon project portfolio, the company recognises that the global low-carbon ammonia market remains in the early stages of development, with regulatory frameworks and demand signals continuing to evolve. As such, and in line with Fertiglobe’s disciplined approach to capital deployment across its low-carbon ammonia project pipeline, Fertiglobe has taken the decision to rephase Project Rabdan,” the company said.

“This decision reflects the company’s prudent investment strategy and commitment to timing capital allocation effectively and is consistent with the broader objectives of the Grow 2030 Strategy, particularly its focus on disciplined low-carbon growth,” the Abu Dhabi Securities Exchange-listed company said.

Fertiglobe’s CEO, Ahmed El-Hoshy, told MEED in May that he expected the FID for Project Rabdan to be reached in 2026.

Project Rabdan

The planned Rabdan facility is part of an expansion phase of the Taziz Industrial Chemicals Zone in Ruwais Industrial City, which is being developed by Abu Dhabi Chemicals Derivatives Company RSC (Taziz) – in which Adnoc and industrial holding company ADQ are 60:40 shareholders.

In addition to the main blue ammonia production plant, the planned complex will also feature units for hydrogen production and synthesis gas purification, as well as pipelines for the transport of feedstock gas, hydrogen and nitrogen.

The Rabdan facility will have its own storage, exportutilities and offsite units, and will also tap into those from the wider Taziz ecosystem.

A carbon capture and storage (CCS) system within the Rabdan complex will capture, compress and transport carbon dioxide emissions from its operations to a larger Adnoc CCS hub in Ruwais.

MEED reported in March that Adnoc was initiating a feed-to-EPC competition to deliver the Rabdan project. The model involves the project operator selecting contractors to execute the feed work and then choosing the contractor with the most competitive feed proposal to execute EPC works on the project, while also compensating the other contestants for their work.

The following contractors are understood to have submitted bids to Adnoc for the feed-to-EPC contest for the Rabdan project by the deadline of 8 March:

  • GS Engineering & Construction (South Korea)
  • Hyundai Engineering & Construction (South Korea)
  • Larsen & Toubro Energy Hydrocarbon (India)
  • Linde (Germany)
  • McDermott (US)
  • Saipem (Italy)
  • Samsung E&A (South Korea)
  • Technip Energies (France)
  • Tecnimont (Italy)

MEED later learnt from sources that Adnoc/Fertiglobe shortlisted Larsen & Toubro Energy Hydrocarbon, Linde and Technip Energies to participate in the feed-to-EPC competition for the project.

However, the prices submitted by the bidders for feed work were above Adnoc/Fertiglobe’s budget, leading to a stalemate.

Fertiglobe financial performance

Adnoc became the majority shareholder in Fertiglobe after completing a transaction in October wherein it increased its shareholding in the company from 36.2% to 86.2%. The remaining 13.8% of Fertiglobe’s shares trade on the ADX, following the company’s stock listing in October 2022.

In the second quarter of this year, Fertiglobe announced that its net profit attributable to shareholders stood at $12m, representing a 68% year-on-year increase. The company reported revenues of $566m, reflecting a 14% year-on-year increase, while adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 26% to $176m.

In the first half of 2025, Fertiglobe reported a net profit of $85m, representing an 18% decline compared to the prior year, driven by a one-off foreign exchange gain in the first half of 2024. Revenues in the first half of the year stood at $1.26bn, reflecting a 20% increase year-on-year increase. Adjusted Ebitda for the period stood at $437m, up 36% year-on-year.

Blue hydrogen and ammonia goals

Abu Dhabi is set to become a major producer of blue hydrogen and blue ammonia when the first phase of the complex in the Taziz Industrial Chemicals Zone, which is currently under construction, enters operations in 2027.

The complex, known as Project Harvest, will be located within the first phase of the Taziz Industrial Chemicals Zone.

A joint venture of Fertiglobe, South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company is the main stakeholder in Project Harvest, which will have an output capacity of 1 million t/y.

The joint venture awarded Tecnimont the main contract, worth $500m, for EPC works on the blue ammonia production project in May 2024. El-Hoshy said Fertiglobe and its partners expect to start operations at the Project Harvest complex in 2027.

Fertiglobe, in its financial results announcement for Q2 and H1 2025, confirmed that Project Harvest is “currently under construction” and “remains a core part of our decarbonisation roadmap”.

Together, Projects Harvest and Rabdan could add 2 million t/y of capacity, more than doubling Fertiglobe’s current 1.6 million t/y ammonia capacity and increasing its total sellable capacity to 8.6 million t/y of net ammonia and urea combined, in addition to other announced global projects.

US blue hydrogen project

Fertiglobe, separately, said it “continues to evaluate the development of Project Baytown in collaboration with Adnoc and ExxonMobil, as part of our broader efforts to advance low-carbon ammonia solutions globally”.

Last September, Adnoc signed an agreement with US energy producer ExxonMobil to become a stakeholder in a proposed blue hydrogen and blue ammonia production facility in Baytown, in the US state of Texas.

As part of the agreement, Adnoc will become a 35% stakeholder in the planned facility, with ExxonMobil owning the majority 65% stake. The facility is projected to produce up to 1 billion cubic feet a day (cf/d) of blue, or low-carbon, hydrogen and more than 1 million t/y of blue ammonia, which would make it the world’s largest such facility of its kind.

The project partners, at the time of signing the agreement, said they expect to achieve FID on the project in 2025, with the facility scheduled to enter operations in 2029.

https://image.digitalinsightresearch.in/uploads/NewsArticle/14479532/main.jpg
Indrajit Sen
Related Articles
  • UAE firm wins contract for battery storage project

    10 October 2025

    Etihad Water & Electricity (EtihadWE) has won the award to develop the UAE’s largest grid-side energy storage project to be awarded through open tender. 

    Its subsidiary, Emirates Utilities Development Company (EUDC), will develop and operate the project, its first since its establishment.

    Chinese firm Dongfang International has been appointed as the EPC contractor.

    Called Bess 1, the project closely follows the model of Abu Dhabi’s independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

    The contract was signed at the Ministry of Energy in Abu Dhabi in the presence of senior officials from Dongfang Electric Corporation, EtihadWE and EUDC. 

    In April, MEED reported that Ewec had received proposals for the facility, which is expected to provide a total storage capacity of close to 1GWh across two sites, Al-Bihouth and Madinat Zayed. It will also include supporting booster stations.

    It is understood that the ESA will be for 15 years, commencing on the project’s commercial operation date, which falls in the third quarter of 2026. 

    The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

    The report named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14843641/main.jpg
    Mark Dowdall
  • Ashghal seeks firms for sports facilities upgrade

    10 October 2025

     

    Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting consultants to bid for post‑contract professional consultancy services for the upgrade and renovation of Ministry of Sports & Youth facilities in the south sector.

    The assets include Qatar Bowling Centre, Al-Ahli Sports Club, Al-Arabi Sports Club, Al-Sadd Sports Club, Qatar Sports Club, Al-Wakrah Sports Club, Gharrafa Sports Club, Duhail Sports Club and Al-Khor Sports Club.

    The notice was issued on 5 October, with a closing date of 26 October.

    The contract duration is two years and seven months, which includes a 400‑day maintenance period.

    The latest notice follows tendering for the construction of roads and infrastructure in the town of Smaisma.

    The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.


    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14843114/main.png
    Yasir Iqbal
  • Tendering begins for $1bn Sal Riyadh logistics centre

    10 October 2025

    Saudi Arabia’s Sal has started the tendering process for its upcoming SR4.2bn ($1bn) logistics zone in Falcon City, north of Riyadh.

    The tender for the earthworks package was issued on 21 September, with a submission deadline of 7 October.

    UAE-based Global Engineering Consultants is the project consultant.

    Earlier this week, the firm signed a lease agreement for the project, which will span about 1.57 million square metres (sq m). 

    According to an official statement: “The lease will extend for 30 years, which is further extendable to an additional 15 years upon agreement of both parties.”

    The logistics hub aims to meet the demand for customised warehouses located near King Khalid International airport and the Riyadh Metro.

    The project is in line with Vision 2030 and the National Transport & Logistics Strategy, which aims to support the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    Sal and Sela signed an agreement to develop the project in March.

    GlobalData expects the kingdom’s construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    Growth will also be supported by government investments in rail, dams, industrial and road infrastructure projects. 

    The industrial sector is estimated to grow by 3.3% in 2025-28, supported by investments in the development of manufacturing, logistics, chemicals and pharmaceuticals plants.


    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14842592/main.gif
    Yasir Iqbal
  • Oman tenders consultancy for dams and reservoir study

    10 October 2025

    Oman’s Ministry of Agricultural, Fisheries Wealth & Water Resources has opened bidding for consultancy services covering feasibility studies and detailed designs for recharge dams, artificial reservoirs and flood protection dams in Wilayat Mahdah, Al-Buraimi governorate.

    The bid submission deadline is 16 November.

    The selected consultant will conduct a comprehensive feasibility study for 10 proposed sites.

    Based on this study, detailed engineering designs and tender documents will be prepared for five dams and three artificial reservoirs at priority locations to be approved by the ministry.

    The projects are aimed at enhancing groundwater recharge, improving water balance and securing sustainable resources to support future agricultural expansion and investment in the area.

    The work also includes the design of flood protection dams upstream of the Al-Rawḍah Special Economic Zone to reduce flash flood risks and safeguard planned developments.

    In addition, the consultant will study drainage channels from the recharge and flood protection dams to the beneficiary areas. The total channel length is estimated at about 50 kilometres, the authority said.

    Tender documents will be available to purchase until 27 October. A tender fee of RO300 and a bond equivalent to 1% of the quoted value are required.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14842491/main.jpg
    Mark Dowdall
  • Eni restarts oil and gas exploration in Libya

    10 October 2025

    Register for MEED’s 14-day trial access 

    The Italian oil and gas company Eni has restarted oil and gas exploration activities in Libya after a five-year hiatus.

    Eni’s North African unit has resumed work on exploratory well C1‑16/4, located off Libya’s northwest coast, according to the National Oil Corporation (NOC).

    In March 2020, Ensco’s 4005 rig began drilling the C1‑16/4 well and reached a depth of 1,012 feet before operations were halted due to the Covid‑19 pandemic.

    Ensco’s rig has now been replaced with Saipem’s Scarabeo-9, a sixth-generation semi-submersible drilling rig of Frigstad D90 design.

    The Scarabeo‑9 is re‑entering the well to complete drilling operations, aiming to reach a planned final depth of 10,520 feet, the NOC said.

    The exploratory well C1-16/4 is situated in Contract Area D, previously known as MN 41.

    It lies at a water depth of about 743 metres, approximately 95 kilometres from the Libyan coast and around 15km from the Bahr Es Salam gas field.

    Eni’s return to upstream exploration comes in the wake of US-based ExxonMobil signing an agreement to return to the North African country.

    On 4 August, Exxon signed a memorandum of understanding (MoU) with the NOC in London.

    Under the terms of the non-binding MoU, ExxonMobil agreed to conduct a detailed technical study of four offshore blocks located near Libya’s northwest coast and the Sirte Basin.

    Libya is trying to increase its national production capacity to 2 million b/d from the current level of around 1.3 million b/d.


    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14841969/main4339.jpg
    Wil Crisp