CF secured a memorandum of understanding (MOU) in January with Jera Co. Inc. “for the first significant volumes of ammonia as a clean energy source,” Will said. The deal could supply up to 500,000 metric tons/year of “clean” ammonia beginning in 2027. 

[Want today’s Henry Hub, Houston Ship Channel and Chicago Citygate prices? Check out NGI’s daily natural gas price snapshot now.]

Another joint venture with Mitsui & Co. Ltd. for the Blue Point Complex could lead to exporting blue ammonia from Ascension Parish, LA. A final investment decision is set for later this year. If the complex proceeds, it would take about four years to complete.

ExxonMobil has been tapped to transport and permanently store CF’s captured CO2 in Vermilion Parish, LA. The integrated major, which is developing a 125,000-acre CO2 storage facility in the parish, in turn reached an agreement with EnLink Midstream LLC to transport the CO2 through its pipeline network. 

“Looking ahead, we believe that the global nitrogen supply-demand balance and global energy cost structure will continue to present attractive margin opportunities for our cost-advantaged network,” Will said.

During 4Q2022, CF’s cost for natural gas used for production in cost of sales averaged $6.88/Mcf, compared with $6.00 a year earlier. For 2022, gas costs averaged $7.18, versus $4.21 in 2021.