Woodside Energy Acquires OCI’s Texas Ammonia Project for $2.35 Billion
(P&GJ) — OCI Global has agreed to sell its Clean Ammonia project in Beaumont, Texas, to Woodside Energy Group Ltd. for $2.35 billion on a cash-free and debt-free basis.
Under the agreement, Woodside will acquire 100% of OCI Clean Ammonia’s equity interests, paying 80% of the purchase price at closing and the remaining 20% at project completion. OCI will manage the construction, commissioning, and startup of the facility until it is fully operational, after which Woodside will take over. The transaction is expected to close in the second half of 2024, subject to customary conditions and OCI shareholder approval.
The OCI Clean Ammonia project, started in 2021, is the world’s first large-scale, low-carbon intensity ammonia facility. The project integrates Linde’s low CI hydrogen production and carbon capture technology with OCI’s ammonia production, storage, and transportation infrastructure. It aims to produce 1.1 million metric tonnes of blue ammonia annually, with the potential to double its capacity. The facility will capture and sequester 1.7 million metric tonnes of CO2 per year.
"We are exceptionally proud to have put in motion on a global scale the first FID'd blue ammonia project, with first production expected in less than a year from now,” Nassef Sawiris, executive chairman of OCI, said. “This pioneering investment will contribute to the global availability of low-carbon intensity ammonia, with significant potential to reduce carbon emissions in hard-to-abate sectors, including existing markets in fertilizer and industrial sectors, as well as in new applications in power and shipping."
Morgan Stanley & Co. International plc is serving as financial advisor to OCI, with A&O Shearman and Vinson & Elkins acting as legal advisors.
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