QatarEnergy and Mitsui Sign 20-Year Urea Supply Agreement
QatarEnergy and Mitsui Sign 20-Year Urea Supply Agreement
QatarEnergy announced it has signed a 20-year large-scale urea supply agreement with Japanese trading giant Mitsui & Co., Ltd. Announced in Doha on November 10, 2025, the agreement will see QatarEnergy supply 0.5 million tons annually starting January 2026. This long-term contract represents a key component of both Qatar's strategy to increase its influence in the global fertilizer market and Mitsui's objectives to secure food and agricultural supply chains.
Announcing the agreement, Qatar's State Minister for Energy Affairs and QatarEnergy CEO Saad Sherida Al-Kaabi noted that the partnership with Mitsui has been "further strengthened" through "decades-long strategic collaboration," stating:
"With growing global urea demand, we aim to increase our international production footprint to support food production and security."
Al-Kaabi also recalled QatarEnergy's plans for a new large-scale urea production complex announced in September 2024. Once operational, this facility will increase Qatar's urea production more than twofold and position the country as the world's largest urea exporter.
Strategic Partnership: Long-Term Security for Agricultural Supply Chains
According to QatarEnergy's statement, this supply agreement reflects the company's strategy of establishing long-term relationships with leading global players in the fertilizer industry. Since urea is one of the most widely used nitrogen fertilizers in the global agricultural sector, long-term supply contracts are critical for food security.
Through its extensive trading network and strong position in the agricultural and chemical product supply chain, Mitsui will now have a stable long-term urea source for both Japanese and global customers with this agreement.
Qatar's Rapid Rise in the Fertilizer Sector
QatarEnergy is a central player not only in the country's oil and gas sector but also in petrochemicals and fertilizer production. Thanks to its cost advantage based on natural gas reserves, Qatar has a competitive edge in ammonia and urea production.
Once new investments are completed, Qatar will:
become the world's largest urea exporter,
emerge as a more dominant supplier in Asian and European markets,
establish itself as a reliable source for long-term fertilizer contracts.
Mitsui: Multi-Sector Trading Giant
Mitsui & Co., Ltd. is one of Japan's leading general trading companies operating in numerous sectors including energy, chemicals, machinery, infrastructure, metal trading, food and logistics.
This agreement particularly strengthens Mitsui's position in:
agricultural inputs,
fertilizer supply chains,
growing food demand in Asian and African markets.
Global Context: Urea Demand is Rising Rapidly
In recent years, worldwide urea demand has been steadily increasing due to:
food production,
growing populations,
agricultural productivity requirements,
geopolitical supply risks.
For this reason, the QatarEnergy–Mitsui agreement is not merely a supply contract between two companies; it is also viewed as a critical stabilizing step in the global food security chain.
Key Points:
QatarEnergy and Mitsui have signed a 20-year urea supply agreement.
Annual supply volume is 0.5 million tons (commencing January 2026).
The agreement aligns with Qatar's plans for a major facility that will more than double urea production.
QatarEnergy is on track to become the world's largest urea exporter.
Mitsui secures long-term supply chains for agricultural and fertilizer operations.
Urea demand continues to grow on a global scale.
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News Link: https://en.portnews.ru/news/384323/
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Author: SedatOnat.com
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