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    Nitrogen+Syngas 400 Mar-Apr 2026

    17 March 2026

    Government moving forward with coal-based urea plant

    PAKISTAN

    Government moving forward with coal-based urea plant

    The government of Pakistan has published a ‘strategic roadmap’ for the country’s major Coal-to-Fertiliser (C2F) initiative. The project is being executed by the publicly-owned Fauji Fertiliser Company (FFC), and will use local coal reserves at Thar as feedstock for the ammonia plant, which will in turn feed 720,000 t/a of urea capacity. The $1.1 billion project aims to strengthen the country’s fertiliser security as well as add value to local resources. A bankable feasibility study was completed in November 2025, and the project is now in the Front-End Engineering Design (FEED) and project agreements phase. Under the proposed timeline, financial closure is expected between late 2026 and 2027, while commercial operations are targeted to commence in January 2031.

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    Price Trends

    Ammonia values have continued to ease across most regions at the end of June, as the first ammonia vessels begin to exit the Gulf since the Iranian conflict began. Iranian ammonia had also begun to flow to India following the US Treasury’s issuance of a 60-day sanctions waiver on 22 June, allowing dollar-denominated trade in Iranian petrochemical products through 21 August. As a result, Indian bids have been heard as low as $750/t c.fr, as buyers benefit from a widening pool of available supply - Iranian, Chinese and renewed Southeast Asian material are all competing for the same business.