meed-logo

line1 line2 line3
SIGN IN / REGISTER

EuroChem eyes Mena food security opportunity

24 August 2023

 

EuroChem Group is one of the top three global fertiliser producers and is one of only three firms worldwide with manufacturing capacity in all three primary nutrient groups: nitrogen, phosphates and potash.

Headquartered in Switzerland, EuroChem operates manufacturing facilities in Belgium, Brazil, Kazakhstan, Lithuania and Russia, employing over 27,000 people in 40 countries. Its products are exported to more than 100 countries.

In the wake of the Russia-Ukraine war, however, the company has found itself caught in the net of economic sanctions imposed by the EU and its member states on companies doing business in Russia.

The financial sanctions, which included the freezing of its bank accounts, caused EuroChem to look to set up a branch outside Europe from which it could continue to do business with its customers. The company opened a trading outpost in Dubai earlier this year.

“Recently, we have moved some of our trading functions to Dubai to be closer to our clients in Asia, Africa and the Indian subcontinent. These regions present great growth opportunities for our business and will add to our strong market presence in Europe and the Americas,” says Samir Brikho, executive chairman and CEO of EuroChem Group.

“While EuroChem remains a Swiss company with global operations across most major agricultural markets, establishing this new branch in the Middle East will position us to expand our operations in the region, as well as across Africa and Asia.” 

Regional strategy

EuroChem is looking to tap into the opportunities presented by the efforts of countries in the Middle East and North Africa (Mena) region to address food security challenges.

“We believe the region presents production and sales opportunities that are aligned to our long-term growth ambitions. We are discussing partnerships and investments that could further bolster our regional presence,” Brikho says. 

“We know the potential is there. In 2022, EuroChem sold almost 140,000 tonnes of fertilisers and industrial products to the Mena region, including more than 40,000 tonnes sold to the Middle East,” he says, adding that the firm is also committed to making a contribution to food security in Africa.

“We recently appointed a head of strategy for Africa who will help us to identify opportunities for investment on the African continent.”

The availability of commercially-feasible natural gas as a feedstock is one of the key criteria for fertiliser producers such as EuroChem to consider when investing in output expansion projects. 

“Gas is an essential feedstock for the production of nitrogen fertilisers and an important input for phosphate fertilisers. Both fertiliser types are produced by EuroChem. As with all input materials, the availability of natural gas, at the right price and in proximity to our operations, is essential for our production and business model,” Brikho says.

When it comes to potentially expanding EuroChem’s business in the UAE beyond the sales branch, Brikho says: “The UAE is perfectly positioned as a major commercial, manufacturing, logistics and export hub with more than 40 multidisciplinary freezones.

“However, fertiliser production is reliant on proximity to its raw material supply chain of ammonia, natural gas, phosphate rock and potash. 

“At present, we have no plans to invest in production facilities in the UAE, but if we identify opportunities that make business sense, then it will most certainly be considered.”

Addressing food security

Food security is a growing global challenge, and for the Mena region, which is primarily an importer of food products, the challenge is steep. 

The situation has been made worse by rising global inflation spiking food prices, especially those of agricultural produce.

The high cost of fertilisers for farmers has played a part in pushing food prices even higher in recent months, mainly as a consequence of the Russia-Ukraine war.

“The fertiliser industry has faced multiple sanctions-related obstacles that have disrupted production, access to finance, logistics and supply chain networks. Taken together, this had a devastating impact on global production last year,” says Brikho.   

The fertiliser industry has faced multiple sanctions-related obstacles that have disrupted production

“In Europe in particular, the inconsistent application of EU policies relating to sanctions had profound effects that curtailed production and caused shutdowns of European fertiliser production facilities. This led to reduced supply and availability and drove up costs.”

During last year’s peak, fertiliser prices increased by up to 300 per cent compared to 2021, affecting farmers globally, he continues.

“Now, we are seeing the longer-term impacts this has had on food availability and prices globally, where it is always those who can least afford it who suffer the most.”

EuroChem is doing its part to address food security and challenge the issue of rising costs, the CEO says. 

“At EuroChem, we are united with international farmers and those from regions such as Mena that rely heavily on food and fertiliser imports.”

International governments need to put policies in place that "protect the global agricultural supply chain from the types of disruption and volatility brought on by geopolitical events and sanctions that we have experienced over the last year”, Brikho adds. 

“We have to work together to mitigate against shocks that continue to impact food production, availability and the price of feeding our communities – and in particular those communities in poorer countries that are the most vulnerable.” 

Main image: EuroChem's facilities in Antwerp, Belgium

https://image.digitalinsightresearch.in/uploads/NewsArticle/11093411/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Mace confirms Muscat cultural complex appointment

    3 September 2026

    UK-headquartered engineering firm Mace Consult has confirmed its appointment to manage the construction of the Sayyid Tarik Bin Taimur Cultural Complex in the Al-Seeb area of Muscat.

    The firm will provide project leadership, programme management, commercial oversight and delivery assurance services.

    The complex will be developed on a 400,000-square-metre (sq m) site. Centred on an urban plaza, it will bring together a range of cultural and institutional facilities.

    These include a 23,000 sq m national library, a 15,500 sq m national archives, four facilities buildings with a combined area of 14,000 sq m, and a 5,000 sq m energy and data centre.

    At the heart of the development is the national theatre, which will include a 1,000-seat auditorium and a 250-seat auditorium. The facilities will sit within landscaped gardens and water features, alongside a signature canopy structure.

    In October 2023, the Ministry of Culture, Sports & Youth awarded a design-and-build contract for the complex to a joint venture of local firm Saif Salim Issa Al-Harrasi and Turkiye’s Sembol Construction, MEED reported.

    In January 2026, UAE-based steel structure manufacturer Emirates Building Systems, a wholly owned subsidiary of Dubai Investments, won a contract to deliver the project’s structural steel package.

    Last month, Kuwait-based engineering and architecture consultancy SSH was appointed as the project’s construction supervision consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19314737/main.jpg
    Yasir Iqbal
  • Read the September 2026 MEED Business Review

    3 September 2026

    Download / Subscribe / 14-day trial access

    Nuclear energy is becoming an increasingly important part of the GCC’s long-term power strategy, as governments seek to strengthen energy security, diversify generation and meet decarbonisation goals.

    Saudi Arabia’s civil nuclear cooperation deal with the US marks a major step forward for its plans to develop its first commercial nuclear power plant, while rising electricity demand across the region is creating further momentum.

    With the UAE already operating the Middle East’s first commercial nuclear power station, Saudi Arabia targeting up to 17GW by 2040 and Bahrain exploring small modular reactor technologies, our latest Agenda feature examines the growing role of nuclear energy in the GCC’s future power projects pipeline.

    September’s Market Focus turns to Kuwait, where the country’s oil-dependent economy has weathered unprecedented disruption, yet major investment and infrastructure deals point to resilience.

    This edition also includes a downstream industry report, exploring the accelerating investment in gas processing and associated infrastructure across Mena, the major projects driving spending, and the growing focus on NGL recovery, efficiency and higher-value gas products.

    In the latest issue, we speak to Emsteel chief commercial officer Michael Rion about the Abu Dhabi steelmaker’s plans to strengthen its position in domestic and international markets, including the launch of its ES600 steel rebar and the expansion of its long-standing partnership with Adnoc Group.

    We also examine the GCC’s accelerating tunnelling boom, as major metro, sewerage and road projects increasingly move underground. The feature explores the scale of investment, the contractors and technology driving the market, and the challenges facing the region as demand for tunnelling expertise and equipment grows.

    We hope our valued subscribers enjoy the September 2026 issue of MEED Business Review. 

     

    Must-read sections in the September 2026 issue of MEED Business Review include:

    > AGENDA: Gulf nuclear revival takes shape

    INDUSTRY REPORT:
    Downstream
    > Gas processing takes centre stage in Mena region

    > INTERVIEW: Emsteel persists with business productivity and efficiency

    > TUNNELS: The Gulf’s next construction boom is happening underground

    > KUWAIT MARKET FOCUS: 
    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions
    > DATABANK: Kuwait’s economic gains are dented by conflict in 2026

    > MEED COMMENTS: 
    >     Cash is king for Dubai construction
    > Aramco moves apace with Jafurah unconventional gas campaign
    > Neom’s next phase is crucial to green hydrogen pipeline
    > Oman opens door to direct power sales

    > GULF PROJECTS INDEX: Qatar leads gains as Gulf total holds

    > JUNE 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The history of false dawns

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19308287/main.gif
    MEED Editorial
  • Contractors submit bids for Dukhan field facilities upgrade

    3 September 2026

     

    Contractors have submitted bids to QatarEnergy for a key tender to upgrade facilities at the Dukhan oil field in Qatar, about 80 kilometres west of Doha.

    Dukhan, Qatar’s first and only onshore oil field, was discovered in 1938, with oil production starting in 1939-40. The country currently produces about 1.8 million barrels a day (b/d) of crude, with the Dukhan field accounting for about 350,000 b/d of output.

    QatarEnergy issued the tender for the Dukhan production facilities upgrade (DPFU) Phase 1B (Part 2) project on 8 June, and initially set a bid submission deadline of 26 July for contractors, which it later extended to 9 August.

    The following local contractors, among others, are understood to have submitted bids for the DPFU Phase 1B (Part 2) tender, according to information obtained by MEED Projects:

    • Doha Petroleum Construction Company (Dopet)
    • Galfar Al-Misnad Engineering & Contracting
    • Qatar Engineering & Construction Company (Q-con)

    QatarEnergy originally stipulated a bond validity of 150 days (until 23 December) and a bid validity of 120 days (until 23 November) for the project.

    The engineering, procurement, installation and commissioning (EPIC) scope covers upgrades to 56 oil manifolds, 108 gas-lift manifold slots, chemical injection systems and key pumping facilities, along with associated piping, instrumentation, control, electrical and civil works.

    The scope includes demolition of obsolete equipment, degassing station enhancements, and full testing and handover. It also encompasses additional capacity enhancement works under Part 3, mainly the installation of new oil export and produced-water transfer pumps, along with supporting facility modifications.

    The project involves complex interfaces and shutdown-critical activities requiring expertise in live-plant integration.

    The Dukhan oil field extends over an area of about 80km by 8km and consists of four reservoirs: Khatiyah, Fahahil, Jaleha and Diyab. The first three are oil reservoirs. The more recently developed Diyab reservoir contains non-associated gas and is estimated to hold around 2 billion barrels of crude oil reserves. Diyab lies on the southern flank of Dukhan.

    ALSO READ: Frontrunners emerge for Qatar offshore oil field expansion
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19312615/main.jpeg
    Indrajit Sen
  • Oman tenders advisory for 3GW solar IPPs

    3 September 2026

    Nama Power & Water Procurement Company (Nama PWP) has invited bids for legal consultancy services for the development of three 1GW solar independent power projects (IPPs).

    The projects will connect to Oman’s main interconnected system (MIS) and are targeted to reach commercial operation by the second quarter of 2030.

    The bid submission deadline is 10 October.

    The state offtaker has now tendered three separate consultancy contracts for the solar IPPs, including two issued in July.

    The bid submission deadline for the financial and commercial consultancy services tender is 10 September.

    Earlier, on 15 July, a technical advisory tender was issued for the three projects as part of a 4GW programme.

    As MEED reported, the financial advisory tender covers four 1GW solar projects connected to the MIS, also targeting commercial operation by the second quarter of 2030.

    It is understood that bids were submitted for this contract on 26 August.

    Oman Electricity Transmission Company (OETC) had earlier outlined the planned grid connection for four 1GW solar IPPs as part of the sultanate’s renewable energy expansion through 2030.

    The projects are included in OETC’s Five-Year Annual Transmission Capability Statement for 2026-30.

    The first, the 1GW Adam solar IPP, is scheduled for grid integration in 2028 and is further ahead in the procurement process, with Nama PWP issuing a request for qualification for the project in June.

    OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19311796/main.jpg
    Mark Dowdall
  • US firm wins work on QatarEnergy NGL train project

    3 September 2026

    Register for MEED’s 14-day trial access 

    US-based Nessco has  that it has won a subcontract to provide telecommunications, radio and security systems for QatarEnergy’s project to add a fifth natural gas liquids (NGL) train at its fractionation complex in Qatar’s Mesaieed Industrial City.

    The subcontract was awarded to Houston-headquartered Nessco by India’s Larsen & Toubro Energy Hydrocarbon (LTEH), in its capacity as the main contractor performing engineering, procurement and construction (EPC) works on the NGL-5 project.

    MEED reported last September that QatarEnergy had selected a consortium of LTEH and Greece-headquartered Consolidated Contractors Group (CCC) to execute EPC works on the NGL-5 project.

    The aim of the project, estimated to be worth $2.5bn, is to build a fifth NGL train with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

    In a statement confirming its contract award in October last year, LTEH said the scope of work on its contract “encompasses engineering, procurement, construction, installation and commissioning of a natural gas liquids plant and allied facilities for processing rich associated gas (RAG). This also involves all associated utilities and offsites and integration with existing facilities.

    “The RAG sourced from offshore and onshore oil fields will be treated at the plant to remove impurities like H2S, CO2 and H2O, producing value-added products such as lean sales gas, ethane, propane, butane and hydrocarbon condensate,” Bombay Stock Exchange-listed L&T said. 

    Under the consortium arrangement, LTEH, as the lead partner, will be responsible for engineering and procurement, while CCC will handle construction activities.

    Project scope of work

    Associated gas from the PS1, PS2 and PS3 offshore fields, as well as the Dukhan onshore field, is processed at existing facilities at the NGL complex in Mesaieed – specifically, the Fahahil stripping plant, NGL-1 and Qapco ethane recovery units.

    The planned NGL-5 facility will replace these three units at the Mesaieed complex and process gas from the PS1, PS2 and Dukhan fields.

    The scope of work on the project involves EPC of units for the following functions:

    • Feed gas compression
    • Slug handling
    • Gas sweetening
    • Dehydration
    • Mercury removal
    • NGL fractionation
    • NGL recovery
    • Product treatment
    • Propane refrigeration
    • Acid gas enrichment
    • Sulphur recovery
    • Anti-flaring
    • Utilities
    • Boil-off gas recovery
    • Drains and collection networks
    • Effluent water treatment plant
    • Carbon dioxide treatment and sequestration/export
    • Brownfield modifications
    • Product rundown pipelines

    QatarEnergy intends to start operations at the NGL-5 facility by the second quarter of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19310738/main5414.jpeg
    Indrajit Sen