Woodside Completes $2.35B Ammonia Acquisition, Adds 1.1 Mt/Y Capacity in Texas

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Woodside Energy has taken control of the Beaumont New Ammonia plant, completing its $2.35 billion OCI clean ammonia acquisition and adding 1.1 million tonnes/year capacity. Conventional ammonia exports could double U.S. capacity, while the start of lower-carbon ammonia output slips beyond 2026 due to feedstock delays.

1. Acquisition and Handover

Woodside Energy assumed operational control of the Beaumont New Ammonia facility after completing performance testing and final handover, marking the full integration of OCI Clean Ammonia Holding following its $2.35 billion purchase in September 2024. The deal’s payment structure included an initial 80% and a final 20% upon handover.

2. Capacity and Export Impact

The Beaumont plant brings a nameplate capacity of 1.1 million tonnes per year, potentially doubling U.S. ammonia export volumes. Woodside has secured offtake agreements for conventional ammonia at prevailing market prices and is pursuing additional contracts to match expected output.

3. Lower-Carbon Ammonia Delay

Plans for lower-carbon ammonia production, which would involve cleaner hydrogen or carbon capture inputs, have been pushed beyond 2026. This delay stems from construction setbacks at a third-party feedstock supplier, underlining upstream infrastructure risks in the hydrogen-ammonia value chain.

4. Strategic Diversification

This milestone aligns with Woodside’s strategy to diversify beyond LNG and oil into decarbonization fuels, positioning ammonia as a key hydrogen carrier for shipping, power generation and industrial feedstock. The U.S. Gulf Coast’s low-cost gas and petrochemical infrastructure strengthen Woodside’s export hub ambitions.

Sources

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