CF Industries Holdings Inc., which uses natural gas in its hydrogen and nitrogen manufacturing, agreed to pay nearly $1.7 billion for the Incitec Pivot Ltd. (IPL) ammonia production complex in Waggaman, LA.

CF-Industries

The IPL facility has a nameplate capacity of 880,000 tons/year of ammonia, CF noted. 

The companies plan to allocate around $425 million of the purchase price to a long-term ammonia offtake agreement under which CF would supply up to 200,000 tons/year of ammonia to IPL’s Dyno Nobel subsidiary. CF expects to fund the remaining $1.25 billion of the purchase with cash on hand.

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