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Oil and gas giant looks to new energy to diversify

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One of Australia’s largest oil and gas producers has branched into ammonia production as part of a diversification strategy.

In a statement to the ASX,  Woodside Energy said it has taken operational control of the Beaumont New Ammonia (BNA) facility in southeast Texas, US following the $2.3 billion acquisition in September from OCI Global.

BNA has the capacity to produce and export up to 1.1 million tonnes per annum of ammonia and adds diversity to Woodside’s portfolio.

BNA has the potential to approximately double US ammonia exports, contributing to regional economic growth.

Woodside CEO Liz Westcott outlined the position of the company.

“Successful completion of performance testing and assumption of operational control of the Beaumont New Ammonia facility is an important milestone in Woodside’s strategy to invest in new energy products and lower-carbon services.

“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. In the longer term, we retain our goal of    supporting the development of a competitive lower-carbon ammonia sector.”

In September 2024, Woodside acquired 100 per cent of OCI Clean Ammonia Holding B.V. and ammonia production at BNA commenced in December 2025.

Production of lower-carbon ammonia is now likely to occur after 2026 due to construction issues at the third-party feedstock supply facility, the statement also noted.

Woodside continues to advance its position in the ammonia market by progressing offtake agreements from BNA, it said.

 

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