US Ammonia Production Expands as New Gulf Coast Plants Come Online

US ammonia production capacity is expanding meaningfully in 2026. Gulf Coast Ammonia's 1.2 million metric ton/year plant in Texas City ramped up production through late 2025 and reached commercial operations in early 2026, while Woodside Energy's 1.1 million ton/year Beaumont, Texas facility followed a similar timeline into commercial output.

Further out, the Blue Point Project in Louisiana is positioned to become the world's largest ammonia plant once operational in 2029. Permitting through the Army Corps of Engineers has been on an accelerated timeline as part of a broader federal push to expand domestic fertilizer production.

Policy is a major driver here. In May 2026, USDA officials outlined a goal of increasing domestic fertilizer production by roughly 4.5 million tons per year, citing concerns over fertilizer costs for US farmers. That includes faster permitting for major ammonia projects and renewed support for facilities that stalled under earlier federal grant programs.

The net effect for the market: as US-based supply grows, industry analysts note that expanding domestic output is putting downward pressure on prices that had been elevated by import dependence and global freight volatility. The US ammonia market itself was valued at roughly $16.75 billion in 2025, with growth projected toward $27.6 billion by 2035 as both agricultural and industrial demand continue to rise.

For downstream processors and distributors like CAPL, more domestic capacity generally means more resilient regional supply chains — fewer single points of failure tied to a handful of overseas producers or chokepoint shipping lanes.