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OCI Global and NuStar Strike Deal to Supply Ammonia in the Midwest
OCI Global and NuStar Strike Deal to Supply Ammonia in the Midwest

OCI Global and NuStar Strike Deal to Supply Ammonia in the Midwest

  • 04-May-2023 11:12 AM
  • Journalist: Harold Finch

United states: OCI Global and NuStar Energy L.P. have announced that their affiliates have agreed to transport Ammonia on a new segment of NuStar Pipeline Operating Partnership L.P.'s Ammonia Pipeline System. As part of the agreement, NuStar will construct a new 14-mile pipeline segment that links OCI's Nitrogen facility in Wever, Iowa, to NuStar's existing 2,000-mile anhydrous Ammonia pipeline. This pipeline originates in Louisiana and flows northward to multiple points in the Midwest, including Iowa.

OCI's facility utilizes Ammonia to create fertilizer and DEF (Diesel Exhaust Fluid), a substance that reduces emissions from Diesel engines in cars, light and heavy-duty trucks, farming equipment, and other heavy machinery.

NuStar and OCI join forces to meet the increasing demand for Ammonia, an essential component in the agriculture industry. The partnership aims to transport more Ammonia to address the fertilizer demand of local and regional farmers. Additionally, the companies plan to utilize Ammonia as feedstock for upgraded products to reduce global emissions. The collaboration is expected to create ample opportunities for the Ammonia Pipeline System in the years to come.

Both companies have executed the agreement, which commits NuStar to provide long-term transportation services. OCI has invested $30 million in capital expenditures for the establishment of new Ammonia cooling and storage infrastructure aimed at optimizing its existing storage capacity and efficiently transporting Ammonia from the Gulf Coast for the project's facilitation.

OCI, the owner and operator of U.S. Ammonia production facilities in Wever, Iowa and Beaumont, Texas, has announced its plans to add 1.1 million tons of blue Ammonia capacity in the Gulf Coast by 2025. The company is already considered one of the most efficient manufacturing plants nationwide and has been providing U.S. farmers with a stable, high-quality source of Nitrogen fertilizer products. Since 2017, OCI Nitrogen in Iowa has been central to U.S. operations and looks forward to continued investment in the region.

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