By Samson Echenim
Nigeria’s Dangote Industries Limited, the company majorly owned and run by Africa’s Forbes listed richest man, Aliko Dangote, has been listed to lead global urea capacity among companies, with 5.54 million tonnes per annum (mtpa).
It would be followed by Nagarjuna Fertilizers and Chemicals Limited and Fertilizer Corporation of India Limited who are predicted to add to world’s urea capacity with 3.34 mtpa and 2.99 mtpa respectively in 2030.
Urea is the world’s most commonly used nitrogen fertilizer. Containing 46 percent nitrogen, it is the most concentrated nitrogen fertilizer.
Dangote reported it was constructing the largest fertiliser plant in West Africa in Lekki free trade zone with a capacity to produce 3.0 million tonnes of urea per year.
According to GlobaData, a leading data and analytics company, India is expected to drive the global urea industry growth from planned and announced plants between 2019 and 2030, contributing around 24 per cent of the total urea capacity additions, according to GlobalData,.
The company’s report, “Global Urea Capacity and Capital Expenditure Outlook, 2019 – India and Iran Lead Global Capacity Additions,” reveals that around 91 planned and announced plants are scheduled to come online, predominantly in Asia, Africa and the Former Soviet Union (FSU) over the next 11 years.
“Of India’s urea capacity in 2030, 9.26 million tonnes per annum (mtpa) is expected to come from planned plants while 8.84 mtpa is likely to come from the early-stage announced plants. The country is set to bring 10 planned and 12 announced plants during the outlook period,” GlobaData said.
Dayanand Kharade, Oil and Gas analyst at GlobalData, comments: “India is set to have large urea capacity additions to meet increasing demand and reduce its dependence on imports.”
GlobalData identifies Iran as the second highest country in terms of capacity additions. The country is set to add 15.30 mtpa of planned and announced urea capacity from new-build and expansion plants by 2030. Among these, 11.02 mtpa is expected to come from planned plants and 4.29 mtpa from announced plants.