Yara International announced that its U.S. subsidiary, Yara North America, has reached an agreement to acquire Gulf Coast Ammonia’s ammonia production facility in Texas City, Texas. The company is acquiring the facility from GCA Holdings, affiliated with Lotus Infrastructure Partners and MB Energy, for $1.3 billion.
The acquisition supports Yara’s strategy to diversify its energy exposure and strengthen the competitiveness of its global ammonia production footprint. The deal gives Yara ownership of an ammonia plant with an expected nameplate capacity of 1.3 million metric tons per year.
Air Products will supply industrial gases to Yara under a long-term supply agreement. Yara plans to use its midstream ammonia platform to supply external customers and meet its own internal sourcing needs.
The plant is currently in commissioning and is expected to continue ramping toward full production and stable operations by the end of 2026. Yara said production is targeted at above nameplate capacity.
The acquisition includes the ammonia synthesis loop, related ammonia storage, and exclusive use of loading infrastructure. Hydrogen, nitrogen, and other utilities will be supplied through a long-term contract with Air Products, which owns and operates the largest hydrogen pipeline network in the U.S.
Yara said the structure contributes to its strategic priority of gas diversification by increasing its exposure to U.S. gas prices through Henry Hub. The company noted that the setup is similar to its operations in Freeport, Texas, where a comparable model and Yara’s ammonia expertise have supported operational improvements and high performance.
Following technical due diligence, Yara said the GCA plant has the potential to become one of the most efficient and profitable assets in its global portfolio. The company also said the acquisition strengthens its position on the global ammonia cost curve.
Yara said the deal provides multiple pathways for profitable decarbonization. The company is also extending its collaboration with Air Products through this acquisition and through a previously announced marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen plant in Saudi Arabia.
The $1.3 billion consideration increases Yara’s total capital expenditure outlay for 2026 to $2.5 billion. The company said the deal remains within the expected capex allocated for ammonia investments from 2026 to 2030, as outlined at its Capital Markets Day in January 2026.
As of the first quarter of 2026, Yara reported a net debt-to-EBITDA ratio of 1.00. The acquisition implies a pro forma net debt-to-EBITDA ratio of 1.73, including the dividend payment made in May, which Yara said remains within the limits of its capital allocation policy.
Yara reiterated its 2026-to-2030 capital allocation framework, including average annual capex spending of $1.2 billion in real terms, strict capital discipline, and shareholder returns in line with its dividend policy. The company said the acquisition brings forward part of its anticipated growth capex while accelerating cash flows from new ammonia capacity.
Following completion, Yara’s immediate priority will be commissioning the GCA plant while delivering on its previously announced EBITDA improvement targets. The acquisition is subject to customary closing conditions, including regulatory approvals.
J.P. Morgan Securities acted as financial advisor to GCA Holdings in connection with the auction process for the plant. Yara North America has had a U.S. presence dating back to 1946 and operates seven import and distribution terminals, along with a majority-owned joint venture that owns an ammonia production facility in Freeport, Texas.
Yara is a global crop nutrition and ammonia company founded in Norway in 1905. The company operates in more than 60 countries, serves more than 140 markets, employs about 15,700 people, and reported 2025 revenue of $15.7 billion.
KEY QUOTES:
“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 U.S. and beyond.”
Svein Tore Holsether, President and CEO of Yara
