UAE-controlled Fertiglobe is considering an investment exceeding $1.5 billion in an integrated phosphate fertiliser complex at Egypt’s Ain Sokhna, marking a potential expansion beyond its established nitrogen fertiliser business into higher-value phosphate processing.
The proposed facility would produce 1.3 million tonnes annually of diammonium phosphate (DAP), with commercial operations targeted for 2031, Egypt’s Ministry of Petroleum and Mineral Resources announced on Sunday, 18 October.
The plans were discussed between Petroleum Minister Karim Badawi and Fertiglobe Chief Executive Ahmed El-Hoshy, who outlined a project designed to combine Egyptian phosphate resources with phosphoric acid processing, ammonia supplies and existing industrial infrastructure.
Fertiglobe, controlled by Abu Dhabi’s ADNOC group, already operates major ammonia and urea production facilities in Egypt. The proposed investment would broaden its fertiliser portfolio while supporting Egypt’s ambition to capture more value from domestic mineral resources rather than exporting them primarily as raw materials.
The project’s commercial viability will depend heavily on securing competitive, long-term phosphate supplies. Badawi directed mining authorities to coordinate with Fertiglobe on identifying suitable deposits, while technical assessments will examine processing technology, energy requirements, infrastructure and potential supply agreements.
Fertiglobe is working with consultants to complete feasibility studies. No final investment decision, financing structure or construction timetable has been announced, leaving the proposed 2031 start date conditional on technical and commercial assessments.
The discussions also covered local production of AdBlue, a urea-based solution used to reduce nitrogen oxide emissions from diesel vehicles, potentially extending Egypt’s downstream chemical manufacturing capabilities.
The phosphate complex could strengthen Egypt’s position in international fertiliser markets, drawing on Ain Sokhna’s industrial and maritime infrastructure. Its development, however, will ultimately depend on whether domestic raw materials, ammonia integration and production costs can support competitive exports.
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