Qatar signs 15-year urea supply pact with US company

Unsplash/Tim Mossholder

Qatar, the world’s second-largest exporter of urea, has signed a long-term urea supply agreement with US-based Koch Fertilizer. 

The 15-year agreement, starting in July, will lead to the supply of up to 0.74 million tonnes per annum (MTPA) of urea, state-backed QatarEnergy said in a statement.

Locally manufactured urea will be supplied to the agricultural sectors of the US and other international markets.

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The value of the deal was not disclosed.

Koch Fertilizer, a subsidiary of Koch Industries, operates fertiliser plants in North America, Trinidad and Tobago, and Morocco, with distribution facilities and terminals in the US, Canada, Mexico, Brazil, Australia, and other international markets.

QatarEnergy’s affiliate, Qatar Fertilizer Company, is the world’s largest integrated single-site producer of urea and ammonia.

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Its current production capacity is 4 million tonnes per annum (mtpa) of ammonia and 6 mtpa of urea, the Gulf Times, a Qatar-based newspaper, reported in August 2022.

The Gulf Petrochemicals and Chemicals Association said in March that Qatar will ramp up urea production after commercial operations are expected start at the new Ammonia-7 plan in 2026.