OMIFCO Commissions Nexant for Pre-Feasibility Study on Ammonia-Urea Expansion

Sunday, June 14, 2026

OMIFCO has hired Nexant to conduct a pre-feasibility study for a $2.9 billion expansion of its ammonia–urea plant in Oman, aiming to add a third production train that would substantially boost output. The expansion depends on securing long-term natural gas supplies and, if realized, could strengthen OMIFCO’s position as a key fertilizer exporter to India amidst rising demand.

The Oman India Fertiliser Company (OMIFCO) has engaged US-based consulting firm Nexant to conduct a pre-feasibility study on expanding its ammonia–urea production facility located in Sur, Oman. This move was disclosed in OMIFCO’s prospectus ahead of its planned Initial Public Offering (IPO), which will involve offering a 25% equity stake to institutional and retail investors through the Muscat Stock Exchange (MSX).

OMIFCO currently operates a two-train ammonia–urea complex with ammonia output capacity of 3,500 tonnes per day—equivalent to approximately 1.15 million tonnes annually—and urea production capacity of 5,060 tonnes per day, or about 1.65 million tonnes per year. The Nexant study focuses on a proposed base case scenario involving the addition of a third production train adhering to conventional ammonia–urea technology. This expansion is designed to capitalize on existing infrastructure, utilities, and logistics to improve capital and operational efficiencies.

According to the pre-feasibility analysis, the planned third train would add 3,500 tonnes per day of ammonia capacity and 6,212 tonnes per day of urea capacity, representing a significant increase over current production levels. The estimated capital expenditure for the project is roughly $2.9 billion, with an accuracy range of plus or minus 50 percent. The study highlights that the project would utilize tried-and-tested technologies integrated with existing plant utilities, storage, and export systems, thereby reducing incremental capital investment and complexity of execution.

The strategic rationale for the proposed expansion draws on OMIFCO’s strong operating history, having consistently performed above nameplate capacity, and its established export channels—particularly to India, a market with sustained robust demand for imported urea. Nexant projects that by 2050, assuming India continues to require net urea imports and OMIFCO exports 60 percent of its production to the country, the company could supply roughly 6 percent of India’s total urea import needs. Despite this, OMIFCO is expected to remain a moderate player within the broader Indian market due to the substantial scale of demand.

A critical condition for moving forward with the third train expansion is securing a long-term supply of natural gas feedstock. OMIFCO has formally requested gas allocation from the Integrated Gas Company (IGC), Oman’s state-owned gas transporter, and is currently awaiting confirmation. The company has indicated that, subject to feedstock availability, technology licensing, and satisfactory project management and construction arrangements, the expansion could significantly enhance its production capacity and reinforce its role as a dependable global nitrogen fertilizer supplier.