The Gulf state stands as the world’s second-largest exporter of urea, a commonly used fertiliser.

QatarEnergy has signed a 15-year supply agreement with Koch Fertilizer LLC, the Qatari state-owned company said.

The agreement, which will come into effect in July, stipulates that Qatar will supply the US-based Koch Fertilizer with up to 0.74 mtpa (million tonnes per annum) of urea that would go into supporting the US agricultural sectors and other international markets.

“This agreement marks a significant step in advancing synergy and cooperation and fostering mutual growth and value for both sides,” the President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, said.

Koch’s distribution facilities and terminals are located in the United States, Canada, Mexico, Brazil, Australia, and other international markets. The US company also has fertiliser plants  across North America, Trinidad and Tobago, and Morocco.

“QatarEnergy has been a cherished partner of Koch Fertilizer for more than a decade,” Mark Luetters, Senior Vice President of Koch Industries and President of Koch Fertilizer, said. “The agreement aligns with Koch Fertilizer’s long-term vision and presents an exciting opportunity to better serve our customers.”

Qatar stands as the world’s second-largest exporter of urea, with QatarEnergy’s affiliate, Qatar Fertilizer Company (QAFCO), ranking as the largest integrated single-site producer of urea and ammonia.

In 2022, QAFCO inked a major agreement over the development of the Blue Ammonia project, the largest of its kind in the world, in Mesaieed Industrial City.

The project is set to produce 1.2 mtpa of Blue Ammonia, making it the largest of its kind and the industry’s first world-scale facility. Production is expected to commence in the first quarter of 2026, Al-Kaabi said at the time of the announcement.

The landmark project also adds to the energy company’s efforts in promoting renewable energy and carbon capture solutions.