# Woodside to Begin Process to Reduce Investment in Texas Ammonia Project

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/37244
Published: 2026-10-22T00:54:02.000Z
Updated: 2026-10-22T00:54:02.000Z
Section: Business

> Third-quarter output averaged 0.8 kilotonnes per day, down from 1.8 in the second quarter amid feedstock constraints and a monthlong shutdown.

Woodside Energy Group Ltd. will begin a formal process to reduce its investment in the Beaumont New Ammonia project in Texas after a strategic review, citing the evolving pace of lower-carbon ammonia market development. The company announced the decision Oct. 21 but did not disclose the reduction amount, transaction structure, buyer or timetable.

CEO Liz Westcott said Woodside would “initiate a formal process to reduce our investment and achieve value for our shareholders.” The company operates the facility and holds a 100% interest in it.

The plant produced an average of 0.8 kilotonnes of ammonia per day in the third quarter, down 56% from 1.8 kilotonnes per day in the second quarter. Output reached 69% of nameplate capacity, constrained by third-party feedstock availability and an approximately 30-day shutdown after a Tier 1 process safety event. There were no personnel injuries, equipment damage or lasting environmental impact. Woodside sourced third-party ammonia cargoes on similar financial terms to meet customer commitments.

Woodside cut its 2026 Beaumont volume forecast to 1.5 million–2.5 million barrels of oil equivalent, from 2 million–3 million. Its companywide 2026 production guidance also fell, to 174 million–181 million barrels of oil equivalent from 174 million–185 million.

The facility can produce 1.1 million tonnes of ammonia annually. First ammonia production began in December 2025, and Woodside assumed operational control in March 2026. The company agreed to acquire the project in 2024 for approximately $2.35 billion.

The plant is intended to serve power generation, marine fuel and industrial feedstock markets. Lower-carbon ammonia production remains targeted for 2027, contingent on commissioning of Linde’s low-carbon hydrogen facilities and the start-up of ExxonMobil’s carbon capture and storage infrastructure.