Production Milestone Achieved at Beaumont New Ammonia Facility
The Beaumont New Ammonia (BNA) facility, located in southeast Texas, has successfully produced its first ammonia following the completion of comprehensive systems testing. This achievement represents a critical milestone and marks the first phase of operations commissioning for one of the most significant new ammonia production assets in the United States.
The successful production demonstrates that key plant systems are functioning as designed and confirms the facility’s readiness to progress toward full commercial operations. This milestone reflects months of disciplined engineering, commissioning, and testing work carried out by the project teams.
Transition Toward Commercial Operations
Commercial production of ammonia at the BNA facility is expected to commence following the formal handover of the facility to Woodside Energy from OCI Global, which is scheduled for early 2026.
Following handover, Woodside will assume operational control and responsibility for ramping up production in line with market demand and contractual commitments. The transition period between commissioning and commercial start-up will include additional verification activities, performance testing, and operational readiness reviews to ensure the facility meets all regulatory, safety, and contractual requirements.
These steps are designed to support a smooth and safe transition into steady-state operations while maintaining the highest operational standards.
Lower-Carbon Ammonia Production Timeline
In addition to conventional ammonia production, the Beaumont New Ammonia facility has been designed to support the future production of lower-carbon ammonia, reflecting evolving global energy and decarbonisation priorities.
Production of lower-carbon ammonia is targeted to begin in the second half of 2026, following the completion of additional project phases and integration of emissions-reduction technologies. This timeline aligns with growing customer demand for cleaner energy carriers and industrial feedstocks that support emissions reduction objectives.
Lower-carbon ammonia is increasingly recognised as a key enabler of decarbonisation across multiple sectors, including power generation, shipping, and industrial manufacturing.
Growing Global Demand for Lower-Carbon Energy Solutions
Demand for lower-carbon ammonia continues to strengthen globally, driven by energy security concerns and ambitious decarbonisation targets, particularly in Europe and Asia. Governments and industrial customers in these regions are actively seeking reliable supply chains for cleaner energy products to support energy transition strategies.
The BNA facility is strategically positioned to serve international markets, benefiting from the United States’ established energy infrastructure, access to competitive feedstock, and proximity to export terminals along the Gulf Coast.
Strong interest from international customers underscores the importance of BNA as a long-term supplier of both conventional and lower-carbon ammonia to global markets.
Commercial Agreements Secured with Global Customers
Woodside has finalised agreements with leading global customers to supply significant volumes of conventional ammonia from the Beaumont New Ammonia facility. These agreements provide early market validation for the project and underpin the facility’s initial production ramp-up.
Deliveries under these contracts are expected to commence in 2026 and continue through year-end. The contracts reflect prevailing market prices, allowing flexibility while ensuring reliable supply for customers.
In parallel, Woodside is advancing additional commercial agreements to align with the expected output of the BNA facility, including contracts specifically focused on lower-carbon ammonia. These discussions reflect growing customer appetite for cleaner alternatives and support the long-term commercial viability of the project.
Leadership Commentary on Commissioning Success
Commenting on the milestone, Kellyanne Lochan, Vice President Beaumont New Ammonia at Woodside, highlighted the significance of the achievement:
We are pleased with the results of the commissioning and systems testing completed to date. These outcomes confirm the facility’s production readiness and our ability to move toward commercial start-up following handover. This milestone also reflects the disciplined work of both the OCI and Woodside teams.
Her remarks underscore the collaborative efforts between the project partners and the focus on safety, reliability, and operational excellence throughout the commissioning process.
Ongoing Verification and Operational Preparedness
In the period leading up to handover, the project will continue with further verification, performance testing, and operational preparedness activities. These efforts are aimed at ensuring the facility enters full operations safely, efficiently, and in compliance with all applicable regulatory and contractual obligations.
Both OCI and Woodside remain committed to maintaining strong safety performance and operational discipline as the facility progresses toward sustained commercial production.
Production Capacity and Strategic Importance
The Beaumont New Ammonia facility has a nameplate production capacity of 1.1 million tonnes per annum, making it one of the largest ammonia production facilities of its kind in the United States.
Once fully operational, BNA has the potential to approximately double U.S. ammonia exports, strengthening the country’s position as a leading global supplier of ammonia and supporting broader energy leadership objectives.
Beyond export potential, the project is expected to contribute to regional economic growth, creating jobs, supporting local supply chains, and reinforcing the industrial base of southeast Texas.
Supporting the Energy Transition
Designed to support demand for ammonia, lower-carbon ammonia, and hydrogen-adjacent products, the Beaumont New Ammonia facility represents a significant step toward meeting future energy needs while supporting decarbonisation efforts.
As global markets continue to evolve, BNA is positioned to play a central role in supplying reliable, scalable, and increasingly lower-carbon energy solutions for customers worldwide.
About Woodside Energy
Woodside is a global energy company, operating across three continents. We provide the energy the world needs to heat homes, keep the lights on and support industry. Our resilient and diversified portfolio of oil, gas and new energy projects includes Louisiana LNG and Beaumont New Ammonia. Woodside is one of the largest oil and gas producers in the Gulf of America, where we are actively expanding production and exploring.
1 Estimates based on data outlined in Straits Research, United States Ammonia Market Assessment 2025 by Pricing, Production, Consumption and Trade Analysishttps://www.businesswire.com/
Source Link :
