Yara International ASA has announced that its US subsidiary, Yara North America Inc., has entered into an agreement to acquire Gulf Coast Ammonia’s (GCA) ammonia production facility in Texas City, Texas, for approximately $1.3 billion. The facility is being acquired from GCA Holdings LLC, an affiliate of Lotus Infrastructure Partners and MB Energy, subject to customary closing conditions and regulatory approvals.
The acquisition aligns with Yara’s long-term strategy to diversify its energy exposure while strengthening the competitiveness of its global ammonia production network. Once completed, the company will own an ammonia production plant with an expected nameplate capacity of 1.3 million metric tonnes per year.
Under a long-term agreement, Air Products will continue supplying hydrogen, nitrogen, and other industrial gases required for production. The arrangement mirrors Yara’s existing operating model at its Freeport, Texas facility, where the company has established a similar partnership.
The Texas City plant is currently in the commissioning phase and is expected to gradually ramp up production before reaching stable operations by the end of 2026. Yara plans to leverage its experience in ammonia manufacturing to optimise plant performance, with production targeted to meet or exceed the facility’s nameplate capacity.
According to Yara President and Chief Executive Officer Svein Tore Holsether, the acquisition enhances the company’s operational resilience and provides greater flexibility in managing energy costs. He said the addition of US-based production capacity supports Yara’s long-term strategy of diversifying its energy sources, improving economies of scale, and reducing production costs while reinforcing reliable ammonia supply for customers across global markets.
The acquisition also strengthens Yara’s midstream ammonia platform, enabling the company to serve both external customers and its own fertiliser production operations. The Texas City facility includes the ammonia synthesis loop, storage infrastructure, and exclusive loading facilities, while Air Products will continue operating the associated industrial gas infrastructure through a long-term supply agreement.
Yara said the investment further increases its exposure to US natural gas pricing through the Henry Hub market, supporting the company’s broader strategy of diversifying its energy portfolio and enhancing production competitiveness.
In addition to expanding production capacity, the acquisition is expected to support Yara’s long-term decarbonisation strategy. The company noted that its collaboration with Air Products extends beyond the Texas City facility and includes a previously announced agreement covering the marketing and distribution of renewable ammonia produced at the NEOM Green Hydrogen project in Saudi Arabia. The Texas facility could also provide future opportunities for low-carbon ammonia production, subject to regulatory developments and commercial viability.
From a financial perspective, the $1.3 billion transaction will increase Yara’s capital expenditure for 2026 to approximately $2.5 billion, consistent with the ammonia investment plans outlined during the company’s 2026 Capital Markets Day. Despite the additional investment, Yara stated that the acquisition remains within its capital allocation framework and supports its objective of delivering long-term shareholder value while maintaining a strong balance sheet.
The company indicated that its immediate priority following completion of the transaction will be the successful commissioning of the Texas City facility while continuing to pursue previously announced operational improvement and earnings targets.
The sale follows an auction process managed by J.P. Morgan Securities LLC, which acted as financial advisor to GCA Holdings LLC. Completion of the acquisition remains subject to customary closing conditions, including approval from the relevant regulatory authorities.
For more information visit www.yara.com
