FFC inks coal-to-urea FEED agreement under CPEC 2.0

May 28, 2026 (MLN): Fauji Fertilizer Company (FFC) has signed a Front-End Engineering Design (FEED) agreement with China's Hualu Engineering and Technology Co. Ltd for the development of Pakistan's first coal-to-urea fertilizer project, which marks a  step in the country's industrial and agricultural self-reliance.

The agreement was signed in China on May 24, 2026, with a total investment of US$1.12 billion, according to the company’s post on LinkedIn.

The project, being developed under the framework of CPEC 2.0, will have an annual production capacity of 717,000 tons of urea and will consume approximately 2.1 million tons of indigenous coal each year.

By leveraging domestic coal reserves as feedstock, the initiative aims to reduce Pakistan's dependence on imported gas for fertilizer production while adding value to local natural resources.

FFC said the plant is planned for commissioning by 2030/31, and the project highlights the company's commitment to innovation, energy diversification, and long-term food security for Pakistan.

The signing  is described as a significant milestone in transforming the country's fertilizer landscape and supporting sustainable industrial growth under the broader CPEC framework.

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