Omani Group Backs 50% Expansion of Arzew Fertilizer Plant
An agreement has been reached to expand the ammonia-urea complex of the Algerian-Omani Fertilizer Company (AOA) in Arzew, a port city in Algeria's Oran region. This initiative, supported by Oman’s Suhail Bahwan Holding Group, aims to increase the overall production capacity of the complex by 50 percent through the installation of a third ammonia-urea production train. The expansion strengthens Algeria’s capability to transform natural gas into higher-value fertilizer products. The agreement was finalized during a meeting between Algerian Minister of State and Minister of Hydrocarbons Mohamed Arkab and Shaikh Saad Suhail Bahwan, Chairman of the Omani partner in AOA. Algeria has committed to supplying the additional natural-gas feedstock necessary for the expanded operations, and an action plan has been set to move the project into its implementation phase.
Established in 2008 as a 51:49 joint venture between Suhail Bahwan Group and Algeria’s state-owned energy company Sonatrach, AOA is located at Mers El Hadjadj within the Arzew industrial zone. The initial project represented an estimated investment of approximately $2.4 billion, with commercial operations commencing in December 2017. Since then, AOA has developed into a significant producer and export platform for nitrogen-fertilizers, offering ammonia and granular urea to both the Algerian domestic market and international customers. The complex's existing configuration has a nominal capacity of around 4,000 tonnes per day of ammonia and 7,000 tonnes per day of granular urea. In 2024, the plant reportedly produced over 2.4 million tonnes of urea and 1.35 million tonnes of ammonia, with approximately 90 percent of its urea output destined for export.
The planned expansion is set to further enhance AOA’s role as an important source of non-hydrocarbon export earnings for Algeria, continuing to convert domestically available natural gas into higher-value industrial products for global markets. This project also aligns with Algeria's broader strategy to deepen domestic hydrocarbon processing and foster industries that generate greater value from its natural resources. Minister Arkab has pledged the ministry’s support to accelerate the execution of the project and address any potential obstacles, ensuring the expansion proceeds as scheduled. For both partners, this endeavor provides a platform for combining Algeria’s abundant natural-gas resources with Omani private-sector investment and industrial expertise.
