Fertiglobe — Urea Cycle

Fertiglobe is a 50/50 joint venture between ADNOC and OCI — listed on the Abu Dhabi Securities Exchange. It is the Middle East and North Africa's largest nitrogen fertilizer producer, operating plants in Abu Dhabi, Algeria and Egypt using subsidised regional natural gas feedstocks to produce ammonia and urea for global export.

Low-Cost Gas: The Structural Advantage

Fertiglobe's UAE and Algerian plants access natural gas at subsidised prices significantly below Henry Hub and far below European TTF prices. This feedstock cost advantage — estimated at $150–300/t of urea — makes Fertiglobe one of the world's lowest-cost urea producers. At $300/t global urea, Fertiglobe earns solid margins while European producers lose money.

ADNOC Partnership: Strategic Security

ADNOC's 36% stake provides strategic security — Abu Dhabi's sovereign wealth and political stability backstop the business. ADNOC's relationships with global commodity traders provide distribution reach, and its gas supply contracts are long-term and predictable.

Geographic Diversification Across MENA

Plants in Abu Dhabi, Sorfert Algeria and Egypt collectively produce approximately 5 million tonnes of urea-equivalent per year. Algeria's Hassi R'Mel gas field feeds Sorfert at extremely low cost — making it one of the world's most competitive urea plants.

India: The Key Off-Take Market

Fertiglobe ships primarily to Asian markets — India, South and Southeast Asia — the world's largest urea importers. Indian government fertilizer tenders are the key short-term pricing signal. When India buys aggressively (typically Q2–Q3), Fertiglobe's pricing power increases.

Key Risks

Global urea oversupply from China, Russia and the Middle East can depress prices even with low feedstock costs. India's fertilizer subsidy policy — which determines effective farm prices — can change rapidly. New competitor capacity in the Gulf region is a structural long-run risk.

Cycle Performance Summary