Woodside has entered into a binding agreement to acquire 100% of OCI Clean Ammonia Holding B.V., and its lower carbon ammonia project in Beaumont, Texas (Project) for an all-cash consideration of approximately $2,350 million. The Project is
under construction and targets production of first ammonia from 2025 and lower carbon ammonia from 2026. The consideration is inclusive of capital expenditure through completion of the first phase (Phase 1).
The Project is located on the US Gulf Coast (Beaumont, Texas) and can servecustomers domestically and internationally. Phase 1 has a design capacity of 1.1 Mtpa and is under construction. First ammonia production, derived from natural gas, is
targeted for 2025. Lower carbon ammonia production, derived from natural gas paired with carbon sequestration, is targeted for 2026 following commencement of CCS
operations.
Agreements for the feedstock and CCS capacity are in place. The nitrogen and lower carbon hydrogen feedstock will be sourced primarily from Linde. The Linde feedstock facility is currently under construction, targeting completion in early 2026. Ahead of
completion, early supply of feedstock for the Project will come from multiple suppliers, including Linde, from available capacity in the Gulf Coast.
The CCS services will be provided to Linde by ExxonMobil and are expected to be available in 2026.
The Project will target conventional ammonia customers at start-up and will target lower carbon ammonia customers in Europe and Asia when CCS is operational.
The facility is designed to accommodate a second 1.1 Mtpa production train (Phase2). Phase 2 remains pre-final investment decision (FID). Woodside will target FID- readiness for Phase 2 in 2026 with an expected gross capital expenditure range of
$1.2 – 1.4 billion.
Photo of OCI
Describe more in press release https://www.woodside.com/docs/default-source/lse-announcements/woodside-to-acquire-oci’s-clean-ammonia-project—rns-submit.pdf?sfvrsn=ec842cfc_1
