Yara International ASA is making a major push to strengthen its global ammonia footprint, announcing that its US subsidiary has agreed to acquire Gulf Coast Ammonia’s production facility in Texas City, Texas for USD 1.3 billion.
The deal gives Yara ownership of a plant with an expected nameplate capacity of 1.3 million tonnes per year, currently in commissioning and expected to ramp up toward full production by the end of 2026. Output is targeted to exceed nameplate capacity once stable operations are achieved.
"By bringing this plant into the Yara portfolio, we are strengthening our operational resilience and diversifying our energy costs at a time when supply flexibility matters more than ever. This addition of world-class U.S. production capacity supports our long term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne.
"With a century of experience and a proven commitment to safety across our operations, sales, and distribution networks in over 60 countries, Yara will contribute to reliable supply across critical value chains, in the US and beyond,” said Svein Tore Holsether, President and Chief Executive Officer.
The acquisition is a strategic step in Yara’s plan to diversify energy exposure and strengthen competitiveness through large-scale, value-accretive investments. The company will use its midstream ammonia platform to serve both external customers and internal fertilizer needs, tightening integration across its global supply chain.
Under the agreement, Yara acquires the ammonia synthesis loop, storage assets, and exclusive loading infrastructure. Hydrogen, nitrogen, and other utilities will be supplied through a long-term contract with Air Products, which operates the largest hydrogen pipeline network in the United States. The structure mirrors Yara’s existing model in Freeport, Texas.
Yara says the setup increases its exposure to U.S. gas markets and supports its broader gas diversification strategy, while also opening pathways toward low-carbon ammonia development over time.
Financially, the transaction raises Yara’s 2026 capital expenditure to USD 2.5 billion but remains within previously guided investment plans. The company reports that its pro forma net debt-to-EBITDA ratio stands at 1.73, still within its capital allocation framework.
