Daewoo Engineering completes Indorama Fertilizer Plant 3 in Nigeria ahead of schedule

Daewoo Engineering announced Friday that it completed the Indorama Fertilizer Plant 3 in Nigeria on schedule. The company achieved key construction milestones ahead of plan and will now pursue follow-on contracts on the strength of that performance.

The project was commissioned by IF FZE (Indorama Fertilizer Free Zone Enterprise), the Nigerian subsidiary of Indorama. It involved constructing an ammonia production facility with a daily capacity of 2,300 tons and a urea and urea-fertilizer production facility with a daily capacity of 4,000 tons, near Port Harcourt in Rivers State.

The contract was valued at approximately $265 million, excluding VAT, with a construction period of 32 months running from October 2023 through May this year. The facility produces ammonia from natural gas feedstock, then reacts it with carbon dioxide to produce urea. A granulation unit that processes the urea into commercial fertilizer was also built as part of the project.

Nigeria holds Africa's largest natural gas reserves and has been actively developing its fertilizer industry to capitalize on that resource. The Indorama Fertilizer Plant 3 is expected to expand Nigeria's fertilizer production capacity and improve agricultural productivity.

Daewoo Engineering completed all major milestones ahead of the original schedule. Natural gas feed-in was finished May 5, 14 days early. Ammonia production startup was advanced by 16 days and urea production startup by 19 days. Full operation of both the ammonia and urea plants was each achieved 13 days ahead of schedule, establishing a stable commissioning framework. Final completion was delivered May 30, the originally planned date, without delays.

The result reflects Daewoo Engineering's accumulated plant project experience and local execution capabilities in Nigeria. The company previously completed the Indorama Fertilizer 1 and 2 plants as well as a feed gas conditioning unit for the same client.

With the completion of Fertilizer Plant 3, Daewoo Engineering said its partnership with the client has grown stronger. Sustained engagement with local communities, development of local labor and supply chain development have built trust with both the client and the surrounding community. The company plans to actively pursue follow-on projects on that basis.

Since entering the Nigerian market in 1983, Daewoo Engineering has carried out 75 projects worth approximately $10.8 billion in the country. Starting with a state guesthouse project in Sudan in 1977, the company has expanded its footprint across 11 African nations — including Libya, Liberia, Botswana, Côte d'Ivoire, Cameroon and Mozambique — through roughly 290 projects.

"The early achievement of key milestones and the successful completion of Indorama Fertilizer Plant 3 are the result of the project execution experience and local networks we have built up in Nigeria," a Daewoo Engineering official said. "We plan to actively pursue new follow-on projects and expand our presence in the African market, building on the trust we have established with the client."

Meanwhile, Daewoo Engineering has identified Mozambique as its next base for expanding liquefied natural gas operations in Africa, as the company continues to broaden its reach into Africa, Southeast Asia and North America.