Brussels has put Europe’s gas‑exposed fertilizer industry at the centre of its new Fertilizer Action Plan, warning that high energy costs and plant closures threaten the region’s nitrogen capacity and long‑term food security.
Sour gas production is costly because hydrogen sulphide and carbon dioxide require extensive sweetening, sulphur recovery, safety, and compliance infrastructure, with sulphur sales helping offset but rarely eliminating those added costs.
SABIC Agri-Nutrients Company says that it has received approval from the Saudi Ministry of Energy to allocate feedstock required for the construction of its seventh plant in Jubail Industrial City. The new facility will produce approximately 1.2 million t/a of ammonia and 2.6 million t/a of urea, increasing the company’s urea production capacity from 4.8 million t/a to 7.4 million t/a; a 54% increase. This is expected to strengthen its position as one of the world’s largest producers and exporters of nitrogen-based nutrients, in line with its 2040 growth strategy.
On 6 May, Romanian gas producer Romgaz said it had agreed key terms to take over the Azomureș fertiliser plant, weeks after the Ameropa‑owned producer started a 45‑day restructuring process and warned it could mothball the site without a deal.
Argentina's Pampa Energía is advancing work on a proposed 2 million t/y urea plant but has not yet taken a final investment decision, the company said in its recent investor briefings.
In just its first two months, 2026 had already managed to be a rollercoaster of a year, but at the start of March, the onset of hostilities against Iran by the US and Israel has managed to deliver another huge shock to markets, particularly commodities. Iran’s strategy of widening the conflict to neighbouring states, including by attacking Qatar’s massive LNG facility at Ras Laffan, effectively shutting it down, has sent the LNG market into chaos, and attacks on several tankers and other ships have paralysed maritime insurance markets and by default achieved the long-feared closure of the Straits of Hormuz.
The current block to shipping through the Strait of Hormuz places global fertilizer supply chains at risk, warns the International Fertilizer Association (IFA).
Nutrien says that it underwent “a controlled shut down” of its Trinidad Nitrogen operations at the Point Lisas’ facility from October 23rd, 2025. The company said that the shutdown was in response to port access restrictions imposed by Trinidad and Tobago’s National Energy Corporation (NEC) and “a lack of reliable and economic natural gas supply that has reduced the free cash flow contribution of the Trinidad Nitrogen operations over an extended period of time”. Nutrien says that it will continue to engage with stakeholders and assess options with respect to its operations in Trinidad. Ammonia and urea sales volumes from Nutrien’s Trinidad operations were approximately 85,000 tonnes per month and 55,000 tonnes per month, respectively. Nutrien expects to be within its 2025 annual nitrogen sales volume guidance range of 10.7 to 11.2 million tonnes due to the continued strong performance of its North American Nitrogen operations.
Gas consumption is rebounding in Europe as prices stabilise at lower levels, while the LNG market continues to see large capacity additions.
A consortium consisting of TotalEnergies, Osaka Gas, Toho Gas, and ITOCHU have signed a joint development and operating agreement, granting the Japanese companies a combined 33.3% stake in the Live Oak project – a large-scale facility to produce renewable synthetic natural gas, also referred to as e-NG or e-methane, initiated by TES and TotalEnergies and currently under development in Nebraska. Following the agreement, TES and TotalEnergies will each maintain a 33.35 % stake in the project.