Yara to Buy Texas Ammonia Plant for $1.3 Billion

Yara International agreed to buy an ammonia plant in Texas City, Texas, for $1.3 billion, adding a large U.S. production asset that is still moving through commissioning.

The deal gives the Norwegian fertilizer producer a foothold in a plant designed to make about 1.3 million metric tons of ammonia a year. The facility has been under construction since 2020 and is expected to ramp toward full production and stable operations by the end of 2026.

A near-startup asset

The seller is Gulf Coast Ammonia, which reporting says is owned by Lotus Infrastructure Partners and MB Energy. The plant will produce liquid ammonia from hydrogen and nitrogen gases, with Air Products supplying the industrial gases under a long-term agreement.

That setup matters because the plant is not yet fully online. Yara is buying into an asset that is close to start-up rather than an established operating facility, which could shape the timing of any near-term contribution to output and cash flow.

Why Yara wants it

Yara CEO Svein Tore Holsether said the acquisition strengthens operational resilience, diversifies energy costs and supports the company’s long-term strategy.

The purchase also broadens Yara’s manufacturing footprint in the United States. For a company with a major ammonia and nitrogen products business, the Texas City plant adds supply capacity at a time when ammonia remains a key fertilizer input and industrial feedstock.

What to watch next

The key near-term questions are whether the transaction still needs any approvals or closing conditions and how quickly the plant can move from commissioning into steady production. Yara has not disclosed any earnings or cash-flow impact in the available reporting.

Investors will also be watching how the asset fits into Yara’s broader ammonia network and whether the company provides more detail on financing and integration plans.