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Yara to Acquire Gulf Coast Ammonia Facility for $1.3 Billion

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Yara International said on Thursday it will acquire Gulf Coast Ammonia's production facility in Texas City, Texas, for $1.3 billion, expanding the company's exposure to US natural gas and strengthening its global ammonia portfolio.

The plant, with an expected nameplate capacity of 1.3 million metric tons per annum, is currently in commissioning and is projected to ramp up toward full production and stable operations by the end of 2026.

Yara North America will own and operate the asset, while industrial gases will be supplied under a long-term agreement with Air Products and Chemicals.

The company said the deal supports its strategy to diversify energy exposure and increase competitiveness by expanding access to US gas pricing, particularly Henry Hub-linked supply.

Yara will use its midstream ammonia platform to serve both external customers and its internal fertilizer production needs and expects the plant to ultimately operate at or above nameplate capacity.

The company said the acquisition strengthens its US presence and aligns with its broader collaboration with Air Products, including existing arrangements linked to low-carbon ammonia projects.

It said hydrogen and nitrogen supply will be provided under long-term contracts, while ammonia synthesis loop and storage assets are included in the transaction.

Yara also said the investment increases its 2026 capital expenditure to $2.5 billion but remains within its 2026/30 investment framework.

The company expects a pro forma net debt-to-EBITDA ratio of 1.73, including recent dividend payments, keeping leverage within its capital allocation policy range.

The Oslo-based group reiterated its medium-term target of maintaining net debt/EBITDA between 1.5 and 2 and preserving a strong credit profile.

Completion of the transaction is subject to regulatory approvals.

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