Shale Gas/Ammonia BASF and Yara Plan Ammonia Production in Freeport, Texas
Cheap gas spawns fertilizer projects: BASF and Yara plan to build a joint world-scale ammonia plant on the US Gulf Coast. Plans include a 750,000 tons-per-year hydrogen-synthesis plant at BASF's Freeport site in Texas.
Texas/USA - BASF, which has a strong presence in the United States, is currently a major user of ammonia for its US downstream activities and intends to further strengthen its backward integration. Yara, with its global ammonia network and market expertise, seeks to strengthen its presence in the United States.
Currently, the availability of cheap natural gas from shale gas production in the United States has spawned several huge plant projects, especially on the US Gulf Coast, the region's major petrochemical hub. Natural gas is a premier source of hydrogen, that is used for ammonia production.
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