Lotus Infrastructure Partners’ affiliate is set to sell Gulf Ammonia’s ammonia production facility in Texas, to Yara North America – a subsidiary of Yara International ASA. This deal is worth over $1.3 billion.
It represents a significant milestone for Lotus and highlights the firm’s ability to develop, finance and commercialize large-scale infrastructure assets. GCA, Lotus Infrastructure Partners’ subsidiary, is a single-loop ammonia facility with nameplate capacity of approximately 1.3 million metric tons per annum.
It is currently in commissioning, and once completed, will be one of the most efficient and largest single-loop ammonia facilities globally. Under Lotus’ ownership, GCA advanced from a highly complex development and construction project into one of the most strategically positioned ammonia production export assets in North America.
The facility benefits from access to the U.S. Gulf Coast’s deep industrial base, logistics infrastructure and natural gas-linked feedstock environment. The project also reflects Lotus’ differentiated ability to partner across the energy and industrial value chain to deliver critical infrastructure at scale.
Philipp Pletka, a Managing Director of Lotus Infrastructure Partners, says Gulf Coast Ammonia is a world-class asset that required disciplined execution across development, financing, construction and commercial structuring.
“The Lotus team worked closely with our partners to execute numerous operational, financial and contractual value-add initiatives. We are confident that Yara, a global leader in ammonia and crop nutrition, will be a strong steward of the asset moving forward.”
Himanshu Saxena, Chairman and Chief Executive Officer of Lotus Infrastructure Partners, stated that this agreement is an outstanding outcome for Lotus, our partners and our investors, and highlights our value-add, customer-driven investment approach.
“Ammonia is a significant and growing commodity, and the United States is well positioned to capitalize on its abundant natural resources to supply domestic and global rising demands. We at Lotus look forward to working with global customers and strategic partners to continue delivering these world-class infrastructure projects.”
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Yara Boosts Ammonia Chain
Svein Tore Holsether, President and CEO of Yara International, added that they are strengthening their 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.”
This acquisition demonstrates execution of Yara’s strategy to diversify its energy exposure through value-accretive, disciplined investments that improve competitiveness and support long-term earnings expansion.
Yara will utilize its midstream ammonia platform to supply both external customers, and its own internal sourcing needs. This further strengthens Yara’s ability to serve its fertilizer production system and key industrial customers with reliable ammonia supply.
