August 19 International Fertilizer and Agriculture News

Sabic AN and Maaden Eye Saudi Fertilizer Cooperation

Saudi Arabia’s major fertilizer producers Sabic AN and Maaden have signed an agreement to explore potential cooperation opportunities.

According to exchange filings, the non-binding agreement aims to establish a framework to explore opportunities across the fertilizer value chain, including the production and manufacturing of value-added products. Sabic AN said the agreement will be valid for three years from the signing date. Saudi Arabia’s Ministry of Energy approved the natural gas allocation for the new expansion project in March. Sabic plans to add 2.6mn tonnes of urea capacity in the future, bringing its total capacity to around 7.4mn tonnes. The agreement was signed between Sabic AN and Maaden Integrated Fertilizer Company (MIFC). MIFC was established in September 2023 as Maaden’s holding company for its phosphate business and other key subsidiaries. Sabic and Maaden have a long-standing partnership in fertilizers. Since their establishment, Sabic has held minority stakes in Maaden Wa’ad Al-Shamal and Maaden Phosphate.

Iran: Hormuz to Remain Closed Until the U.S. Fulfills MoU Commitments

Parliament Speaker Mohammad Bagher Ghalibaf said on Tuesday that Iran will continue to close the Strait of Hormuz until the United States fulfills its commitments under the now-defunct ceasefire agreement signed in June. The memorandum of understanding (MoU), signed on June 18, set a 60-day deadline to negotiate an end to the war, reach an agreement on Iran’s nuclear program, and ensure safe passage through Hormuz. The agreement included provisions for the United States to begin easing economic and sanctions pressure on Iran. The deadline expired on Monday. The MoU broke down in mid-July after weeks of disputes over control and management rights in the strait, during which Iran attacked multiple vessels and the United States resumed its maritime blockade. “As we expected, the enemy accepted the memorandum to end the war out of desperation, but soon violated its commitments in order to compensate for its severe political defeat,” said Ghalibaf, who leads Iran’s negotiating team. In the weeks after the MoU collapsed, hostilities in the region eased somewhat, but Iran has continued to attack shipping and restrict vessel transit through Hormuz. According to maritime security firm Windward, only 12 vessels passed through the strait on August 16, including eight inbound and four outbound vessels, compared with more than 100 daily transits before the war began in late February. Ghalibaf said the strait would remain closed “unless the United States fulfills the commitments in the memorandum, including lifting the blockade, releasing frozen assets, removing the oil embargo, ending all threats and military operations on all fronts, and meeting other conditions pledged by the United States.”