Fertiglobe weighs $1.5 billion phosphate fertilizer project in Egypt

Fertiglobe is in preliminary discussions with the Egyptian government over a phosphate fertilizer complex worth more than $1.5 billion, with planned production capacity of 1.3 million tonnes of diammonium phosphate (DAP) annually. According to Egypt’s Ministry of Petroleum and Mineral Resources on October 18, the project would be located at Ain Sokhna, with commercial operations targeted for 2031. Egypt’s Petroleum and Mineral Resources Minister Karim Badawi discussed the preliminary plans with Fertiglobe CEO Ahmed El Hoshy.

The minister called on Fertiglobe to complete technical and economic feasibility studies and coordinate with the Mineral Resources and Mining Industries Authority to identify phosphate rock sources and assess long-term supply. The project remains at an early stage, with no final investment decision, financing arrangements or project partners announced. If developed, it would mark Fertiglobe’s entry into phosphate fertilizers, complementing its existing urea and ammonia operations at Ain Sokhna through the EFC and EBIC plants.

The proposed complex would add to Egypt’s plans to expand domestic phosphate processing and strengthen its position in international fertilizer markets. Misr Phosphate and Indorama are separately developing a 600,000-tonne-a-year DAP and monoammonium phosphate (MAP) project at Ain Sokhna. Market conditions could support additional capacity, as sulfur costs and Chinese export restrictions have contributed to elevated DAP prices. Morocco’s OCP recently sold DAP to Bangladesh at $866 per tonne. If completed, Fertiglobe’s proposed plant could make Egypt a significant additional DAP supplier early next decade, although its prospects will depend on securing reliable phosphate rock and sulfur supplies.

Source: Egypt State Information Service