Air Products’ $500 Million Investment Project with Gulf Coast Ammonia


Jones Day advised Eastman Chemical Company in its strategic project with Gulf Coast Ammonia and Air Products, Inc. to lease a portion of Eastman’s Texas City site.

Air Products announced its largest-ever investment in the United States in winning a long-term onsite business-model supply agreement for a project with Gulf Coast Ammonia (GCA) in Texas City, Texas. Air Products will build, own and operate (BOO) its largest-ever steam methane reformer (SMR) to produce hydrogen, which will be connected to and extend, to approximately 700 miles, its existing and the world’s-largest hydrogen pipeline system in the Gulf Coast; BOO an air separation unit (ASU) to supply nitrogen; and will own and operate a steam turbine generator to supply power and other utilities to GCA’s new world-scale ammonia production plant.

Eastman Chemical Co. is also a strategic partner with Gulf Coast Ammonia and Air Products on the project. GCA will lease a portion of Eastman’s Texas City site for its new world-scale ammonia production plant.

The pipeline segment of the project, which will transport hydrogen to Texas City, is targeted for onstream in the second half of 2021, with the remainder of the facilities expected to be in commercial operation in early 2023.

The Jones Day team was led by William Rowland (Picture).

Involved fees earner: William Rowland – Jones Day;

Law Firms: Jones Day;

Clients: Eastman Chemical Company;