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
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Algeria tenders 310km Tamanrasset railway16 October 2026
-
Joint venture wins $246m RCRC bridges contract16 October 2026
-
Humain tenders 100MW Riyadh AI data centre16 October 2026
-
Adnoc Onshore seeks bids for Bu Hasa field EOR project16 October 2026
-
OTTCO issues tender for Oman oil storage park expansion16 October 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Algeria tenders 310km Tamanrasset railway
16 October 2026
Algeria’s state railway project developer, Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has invited national and international contractors to bid for the construction of a 310-kilometre (km) railway line between Hotel Station and Moulay Lahcen Station.
The planned line is a key segment of the proposed railway corridor connecting El-Menea, In-Salah and Tamanrasset across the southern wilayas of In-Salah and Tamanrasset.
The tender notice was issued on 12 October, with bids due by 10 November.
The tender is open to single contractors and consortiums. To qualify, single firms must have executed at least 200km of new railway lines or track-doubling works since 2010, with accepted project certificates covering sections of at least 100km, along with a cumulative 800 metres of railway bridges with individual spans exceeding 30 metres.
Bidders must also provide at least two rail-tamping machines, two ballast regulators, and a project director with an engineering degree and at least five years of railway construction management experience.
From a commercial and classification perspective, single bidders and consortium leaders must hold a category-nine (IX) professional qualification in public works.
Bidders must also demonstrate an average annual turnover in construction of at least DZ260bn ($1.96bn) across the 2023-2025 financial period.
For joint ventures, the cumulative turnover of all members must meet the $1.96bn threshold, with the consortium leader accounting for at least $1.3bn.
Offers must be accompanied by a bid bond exceeding 1% of the total bid value for submissions exceeding $7.4m, with proposals remaining valid for 90 days beyond the submission date.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20665591/main.jpg -
Joint venture wins $246m RCRC bridges contract
16 October 2026
A joint venture of local contractor Mofarreh Group and Turkey-based Gulsan Holding has won an estimated SR923m ($246m) contract from the Royal Commission for Riyadh City (RCRC) to construct a series of grade-separated steel flyovers across the capital.
The contract, known as Package 2 (Groups 2 and 3), is part of RCRC’s urgent bridges programme under the wider project to build steel bridges at 10 junctions across Riyadh.
The works have a 12-month execution timeline to fast-track traffic decongestion across major arterial corridors.
The joint venture’s scope covers the engineering and construction of grade-separated steel bridge interchanges across seven key intersections:
- IC04: Al-Khair Road and King Salman Bin Abdulaziz Road
- IC05: Prince Turki Road and Imam Saud Road
- IC06: Al-Takhassosi Road and Saeed Al-Sulami Road
- IC07: Khurais Road and Al-Hareth Bin Abdullah Road
- IC08: Khurais Road and Ash-Sharq Road
- IC09: Khurais Road and Marmar Road
- IC10: Al-Kharj Road and Al-Hilla Road
The total length of the flyovers is 8.86 kilometres, excluding Junction IC10.
In addition to the structural steel superstructures, concrete bridge foundations, decks and approach ramps, the contract includes retaining walls, utility diversions, temporary phased traffic arrangements, associated roadworks, drainage networks, roadway lighting, intelligent transportation systems and landscaping.
The client received commercial proposals from several local and international contractors. Other bidders included:
- Masco
- Nesma & Partners
- Al-Omaier Trading & Contracting Company
- Yuksel Saudia
- Batco
- Modern Building Leaders
- Sapac
The urgent bridges initiative is part of Riyadh’s rapid transport infrastructure programme to improve traffic throughput, enhance safety and ease vehicular congestion across central and ring-road corridors ahead of major events, including Expo 2030 and the 2034 Fifa World Cup.
In July, Mofarreh Group and Turkiye’s Gulsan Holding formed a joint venture to bid for and deliver transport infrastructure projects in Riyadh for RCRC.
The joint venture said it will target road, bridge, viaduct and interchange projects.
Mofarreh will provide local market access and operational capacity, while Gulsan will contribute international experience in large-scale transport projects.
The companies said the new venture will support knowledge transfer and localisation, and promote the use of international engineering and construction standards aligned with Saudi Arabia’s Vision 2030 infrastructure and sustainability goals.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20663255/main.png -
Humain tenders 100MW Riyadh AI data centre
16 October 2026
Register for MEED’s 14-day trial access
Saudi artificial intelligence infrastructure developer Humain has issued a request for proposals for an engineering, procurement and construction (EPC) contract to deliver a 100MW artificial intelligence (AI) data centre facility in Riyadh’s Al-Saad area.
The tender was issued on 17 September, with bids due by 8 November.
The contract includes core-and-shell works; civil works; mechanical, electrical and plumbing installation; testing and commissioning; and site infrastructure across a 350,200-square-metre plot.
The project also includes an optional expansion phase that could raise total site capacity to 200MW.
The initial 100MW development is split into two equal 50MW phases, structured across two single-storey IT buildings housing four 25MW data halls.
Phase one targets a ready-for-service date by October 2028, followed by phase two in January 2029.
Under the optional phase three, an additional 100MW facility would be brought online by July 2029.
The data centre will be designed to support high-density graphics processing unit clusters and AI-compute workloads, with rack densities of 240kW to 250kW.
The facility will be built to Uptime Institute Tier III topology and LEED Silver standards as a baseline, targeting LEED Gold.
The operational design targets an annualised power usage effectiveness below 1.35.
Power will be delivered through four 33kV connections supplied by Saudi Electricity Company from two separate high-voltage/medium-voltage primary substations. The scope requires 15 transformers, 15 static 2,250kW IT uninterruptible power supply (UPS) units, and 450kW mechanical UPS systems with lithium-ion battery storage for each 25MW block.
Backup emergency diesel generators will be provided on an owner-furnished, contractor-installed basis, with the EPC contractor handling their installation, connection and testing. Fuel storage will provide 24 hours of autonomous run-time, split between on-site underground bulk tanks and generator belly tanks.
Thermal management combines air and liquid cooling. High-density server racks will be equipped with direct-to-chip liquid cooling loops using coolant distribution units and technical water distribution, paired with air-cooled chillers operating in dual high- and low-temperature loops, alongside fan-wall units.
The total construction timeline is capped at 25 months from site handover or contract signing, with pre-execution early mobilisation scheduled to start in January 2027.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20661045/main.jpg -
Adnoc Onshore seeks bids for Bu Hasa field EOR project
16 October 2026
Register for MEED’s 14-day trial access
The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has sought bids from contractors for a key project to increase the oil production capacity of the Bu Hasa oil field, primarily through enhanced oil recovery (EOR) techniques.
The main objective of the Bu Hasa-Shuaiba EOR Unit 1 (Phase 1) project is to achieve a targeted 70% increase in oil production, extend the Bu Hasa field development’s production plateau and maximise the field’s potential in an economical manner.
The project aims to confirm and validate the optimum EOR technology for the top-ranked reservoirs/units; assess incremental recovery on top of the improved oil recovery (IOR) wedge; extend the field plateau for as long as is economically feasible; and achieve an ultimate recovery factor of 70% from the Shuaiba reservoir. It will evaluate and execute the recommended EOR option through pattern phasing for any technology proven by Adnoc.
Adnoc Onshore is understood to have issued the tender for the project on 20 September, with an initial technical bid submission deadline of 8 October, according to sources. The client later extended the technical bid submission deadline to 17 October, sources told MEED.
The chosen contractor will execute the project under a hybrid contracting strategy comprising:
- A lump sum (turnkey) EPC scope covering the complete pipeline system from East Hub to the separation plant
- A call-out-based scope for execution of all WAG injector and WSW tie-in works
Unless otherwise specified, all activities defined under the contractor’s scope will be deemed included within the lump-sum contract price. This will cover engineering, procurement, construction, testing, pre-commissioning and support to commissioning for a complete and operable system.
At the Bu Hasa field development, three remote degassing stations (RDS-1/2/3) and two satellite stations, Bida Al-Qemzan and Huwaila, are currently in operation. Production from oil wells completed in Shuaiba, Thamama B, Thamama F, Bida Al-Qemzan and Huwaila is routed via individual flowlines to the three remote degassing stations and the Bida Al-Qemzan and Huwaila stations across different parts of the field.
Combined production from the wells at each of these stations is routed to the central degassing stations (CDS) via transfer lines ranging from 16 inches to 24 inches in diameter. In addition, some wells in the central part of the field are connected directly to the CDS.
Previous studies have identified carbon dioxide (CO2) flooding as a promising tertiary recovery mechanism in the Shuaiba reservoir, delivering incremental recovery on top of the IOR wedge (P5 project), extending the field plateau as long as economically feasible, and achieving an ultimate recovery factor of 70% from the Bu Hasa Shuaiba units.
Located 200 kilometres south of Abu Dhabi city, Bu Hasa is Adnoc Onshore’s westernmost producing field. It is one of Abu Dhabi's biggest onshore assets, with crude oil production capacity of 650,000 b/d. It is also one of the Adnoc Group’s oldest oil fields, having been discovered in 1962 and in production since May 1965.
As part of the ongoing Bu Hasa Integrated Field Development Project (BUIFDP), 13 new well pads and two pad hubs have been added to the field. Oil, gas and water produced at these sites will be collected at a central gathering facility, then sent through production headers and transfer lines to the CDS for processing.
Adnoc Onshore is the Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d of oil and about 7 billion cubic feet a day of associated gas production from four main onshore field developments in Abu Dhabi: Bab, Bu Hasa, North East Bab and South East.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20639750/main0548.jpg -
OTTCO issues tender for Oman oil storage park expansion
16 October 2026
Register for MEED’s 14-day trial access
Oman Tank Terminal Company (OTTCO) has issued the main tender for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.
The project, titled Trade Bridge, involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.
The project represents the next expansion phase (phase 1.4) of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).
State-owned OTTCO issued the prequalification notice for the project on 28 July, with contractors submitting initial responses by 4 August and final responses by 19 August, MEED previously reported.
According to sources, OTTCO issued the main tender for EPC works on Project Trade Bridge in the weeks following completion of the prequalification exercise.
The following contractors, among others, are understood to have been prequalified by OTTCO to bid for Project Trade Bridge:
- China Petroleum Pipeline Engineering Company (China)
- China Tianchen Engineering Corporation (China)
- Daqing Oilfield Construction Group Company (China)
- Enppi Muscat (local branch of Egypt-based Enppi)
- Gulf Petrochemical Services & Trading (Oman)
- Hualu Engineering & Technology Company (China)
- Rotary Engineering (Singapore)
- Sinopec Ningbo Engineering Company (China)
OTTCO commissioned the first phase of the Ras Markaz crude oil storage park, covering 10 square kilometres and with a capacity of 26.7 million barrels, in December 2022.
The storage facility has two parts. The first is a marine services area, which includes a floating station for crude imports and exports. This zone is about 7 kilometres offshore and is connected via two 42-inch pipelines and associated facilities.
In water depths of up to 42 metres, the floating station can accommodate very large crude carriers. It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.
The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.
Region’s largest oil storage park
OTTCO will build the Ras Markaz oil storage facility in five phases over several years across an area of about 40 square kilometres, for which it signed a land agreement with Sezad in July 2017.
It will be able to hold 200 million barrels of crude a year. Total investment in the scheme is understood to be $5.2bn.
The storage terminal in the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil-derivatives production plants at Sezad via a pipeline that will supply crude feedstock to the refinery when required.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20638090/main0749.jpg