Ammonia Projects Gain Traction in U.S. as Global Gas Prices Spike

SUGAR LAND--May 11, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--Effects from the rising price of natural gas have rippled through the global energy and chemical markets, with ammonia producers feeling some of the strongest impact. With the exception of the "green" variety, ammonia is sourced from natural gas, but has seen relatively stronger price increases as it is more closely tied to global, rather than domestic, natural gas prices, according to the U.S. Energy Information Administration (EIA).

That isn't to say the U.S. has been slacking in ammonia production--in fact, domestic production has nearly doubled since 2012, according to the EIA, and the 14% of U.S. supply that was imported in 2021 is far below the 37% that was imported in 2012. Industrial Info is tracking about $13 billion worth of active, U.S.-based ammonia-production projects, including those from companies such as Gulf Coast Ammonia LLC, Air Products and Chemicals Incorporated (NYSE:APD), Frontier Natural Resources Incorporated, KeyState Opportunity, Koch Industries Incorporated and CF Industries Holdings Incorporated (NYSE:CF).