The deal adds 1.3 million metric tons per year of expected capacity and lifts Yara's 2026 capex to $2.5 billion as the company expands U.S. gas exposure.
Yara International ASA said its U.S. subsidiary, Yara North America, Inc., agreed to acquire Gulf Coast Ammonia's ammonia production facility in Texas City, Texas from GCA Holdings LLC, affiliated with Lotus Infrastructure Partners and MB Energy, for USD 1.3 billion. The company said the purchase supports its strategy to diversify energy exposure and improve the competitiveness of its global ammonia footprint. Yara said it will own the plant, which has an expected nameplate capacity of 1.3 mtpa (million metric tons per annum), while Air Products will supply industrial gases under a long-term agreement. The facility is in commissioning and is expected to ramp up toward full production and stable operations by the end of 2026, with output targeted above nameplate capacity. Yara said it plans to use its midstream ammonia platform to serve external customers and internal sourcing needs. The acquisition includes the ammonia synthesis loop and related storage, along with exclusive use of loading infrastructure. Hydrogen and nitrogen supply and other utilities will come through a long-term contract with Air Products. Yara said the structure increases its exposure to U.S. gas pricing through Henry Hub (U.S. natural gas benchmark) and mirrors its operating model in Freeport, Texas. Financially, Yara said the consideration raises its total 2026 capex to USD 2.5 billion and remains within the ammonia investment envelope outlined at its January 2026 Capital Markets Day. The company said its pro forma Net Debt/EBITDA rises to 1.73, including the dividend paid in May, from 1.00 as of 1Q 2026, while staying within its capital allocation policy. Completion remains subject to customary closing conditions, including regulatory approvals.