Woodside Sees Delay in Start of Cleaner Ammonia Production at Texas Project

(Update) March 30, 2026, 7:00 AM GMT: Article updated with note on comment request in 6th paragraph.

Woodside Energy Group Ltd said Thursday it is likely the Beaumont New Ammonia (BNA) facility in southeast Texas would not start lower-carbon production this year as targeted.

The expected delay is "due to construction issues at the third-party feedstock supply facility", the Australian energy company said in an online statement.

Lower-carbon production at the facility is conditional on the supply of carbon-abated hydrogen and the startup of an Exxon Mobil Corp carbon capture and storage facility, former owner OCI Global said in a statement September 30, 2024 announcing the completion of the project's sale to Woodside.

Amsterdam, Netherlands-based OCI had signed an agreement with Linde PLC for the supply of emissions-abated hydrogen, as well as nitrogen, to the Beaumont project, as announced by OCI February 6, 2023.

On April 4, 2023 Linde and ExxonMobil announced an agreement under which ExxonMobil would transport and permanently store up to 2.2 million metric tons a year of carbon dioxide from Linde's hydrogen plant.

Rigzone sent Linde a request for comment on the "construction issues".

In Thursday's statement Woodside confirmed it has now assumed operational control of the project from OCI, which continued to manage construction after selling the project to Woodside last year for AUD 2.35 billion ($1.62 billion), following performance testing.

With a peak production of 1.1 million metric tons per annum, "BNA has the potential to approximately double U.S. ammonia exports, contributing to regional economic growth", Woodside said.

"Woodside has secured offtake agreements at prevailing market prices from the conventional ammonia market, and further sale agreements are being advanced in line with anticipated BNA production output", the company said.

The project is part of Woodside's strategy to invest in "new energy products and lower-carbon services", said Woodside chief executive Liz Westcott.

"In the facility's operational phase and in the face of current market disruptions, we remain focused on safely delivering ammonia supply to our customers", Westcott said. "In the longer term, we retain our goal of supporting the development of a competitive lower-carbon ammonia sector".

OCI said separately, "As part of the divestment, OCI has received the $470 million deferred consideration, representing 20 percent of total proceeds, less amounts deducted for outstanding construction obligations, certain closing-related adjustments and remaining estimated close-out costs. These items are included in the previously disclosed total cost to complete of $1.8 billion and were reflected in OCI’s 2025 year-end liability of $228 million on an undiscounted basis, implying expected net proceeds of $242 million in 2026".

"Our remaining obligations are limited to closing out invoices and resolving disputes related to work performed, in accordance with our contractual obligations to Woodside", OCI added.

To contact the author, email jov.onsat@rigzone.com