en.Wedoany.com Reported - Yara North America Inc., a U.S. subsidiary of Yara International ASA, has reached an agreement with GCA Holdings LLC to acquire the ammonia production facility of Gulf Coast Ammonia in Texas City, Texas, for $1.3 billion.
The ammonia plant, with a nameplate capacity of 1.3 million metric tons per year, will be integrated into Yara's manufacturing portfolio. The facility is currently in the commissioning phase and is expected to achieve stable operations by the end of 2026, with actual production targets exceeding the nameplate capacity.
Yara stated that this transaction helps diversify its energy risks, enhance the competitiveness of its global ammonia production network, and improve supply flexibility. Going forward, the company plans to leverage its own ammonia distribution platform to meet both external customer demand and internal feedstock requirements for fertilizer production.
The acquired assets include the ammonia synthesis loop, ammonia storage facilities, and exclusive rights to loading infrastructure. Additionally, under a long-term agreement, Air Products will continue to supply hydrogen, nitrogen, and other utility services required for the facility's operations.
Yara noted that through the Henry Hub market, this investment increases its exposure to U.S. natural gas prices while contributing to long-term operational efficiency improvements. During the ongoing commissioning phase, the company expects to apply its ammonia production expertise to enhance the plant's reliability and performance.
Beyond expanding existing capacity, Yara indicated that the Texas City facility could potentially be used for low-carbon ammonia production in the future, though final implementation will depend on regulatory progress and financial feasibility.
This acquisition raises Yara's planned capital expenditure for 2026 to approximately $2.5 billion, but remains within the ammonia investment framework disclosed during its Capital Markets Day in January 2026. The company stated it will continue to adhere to capital discipline, advancing the commissioning of the Texas City facility while completing previously announced earnings improvement targets.
