MUSCAT, JUNE 13
US-based technology and energy consulting firm Nexant has been commissioned by the Oman India Fertiliser Company (OMIFCO) to undertake a pre-feasibility study assessing the technical and economic viability of expanding the capacity of its ammonia–urea production complex in the eastern part of the Sultanate.
The announcement was disclosed in OMIFCO’s newly published prospectus ahead of its Initial Public Offering (IPO), which will involve the divestment of a 25% equity stake to institutional and retail investors via the Muscat Stock Exchange (MSX).
OMIFCO currently operates a two-train ammonia–urea complex in Sur, with an ammonia production capacity of 3,500 tonnes per day (equivalent to an annual nameplate capacity of around 1.15 million tonnes) and a urea production capacity of 5,060 tonnes per day (approximately 1.65 million tonnes per year).
The Nexant study examines a base case involving the construction of a third production train based on a conventional ammonia–urea configuration, designed to leverage the company’s existing infrastructure, utilities, and logistics to achieve both capital and operating efficiencies.
The proposed expansion is expected to utilise proven technologies and benefit from integration with existing operations, including shared utilities, storage, and export infrastructure, thereby reducing incremental capital requirements and execution complexity.
According to the pre-feasibility findings, the base case contemplates the addition of 3,500 tonnes per day of ammonia capacity and 6,212 tonnes per day of urea capacity, representing a material uplift over current output. The capital cost of this development is estimated at around US$2.9 billion, subject to a ±50% accuracy range.
The Nexant study also underscores the strategic rationale for expansion, citing OMIFCO’s strong operational track record, its ability to consistently operate above nameplate capacity, and its established access to key export markets—particularly India, which continues to show structurally strong demand for urea imports.
By 2050, based on Nexant’s estimates of India’s net urea import requirements and assuming two world-scale urea trains with a combined capacity of approximately 2,050 ktpa, as well as 60% of OMIFCO’s annual output being exported to India, the company could account for roughly 6% of India’s total urea import demand. Even so, OMIFCO is expected to remain a relatively small contributor within the broader Indian import market, reflecting the depth of underlying demand and supporting long-term absorption of additional supply.
“The development of a third train would be contingent on the availability of long-term natural gas feedstock. In this regard, the company has submitted a request to IGC (state-owned gas shipper Integrated Gas Company) for allocation of gas to support the proposed expansion and is currently awaiting confirmation. Subject to securing the required feedstock and satisfactory technology licensing, project management, and construction arrangements, the project would be expected to materially increase production capacity and strengthen the company’s position as a reliable supplier of nitrogen fertilisers to global markets,” OMIFCO noted in its prospectus.
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