Gulf Coast Ammonia Reaches Final Investment Decision on World-Scale Ammonia Plant
Vinson & Elkins represented Gulf Coast Ammonia LLC (GCA) as project counsel and borrower’s counsel and advised on all aspects of the development and financing for GCA’s world-scale anhydrous ammonia plant in Texas, including the negotiation of major commercial contracts and debt and equity financing agreements.
Construction capital will be provided by a joint venture of
Starwood Energy Group and Mabanaft GmbH & Co KG. The project financing
closed on December 30, 2019.
The facility will have a production capacity of
approximately 1.3 million tons of ammonia per year and will purchase hydrogen
and nitrogen gasses as feedstock, providing for significant capital efficiency
and reduced air emissions. Construction of the facility will begin in early
2020 with commissioning expected in the first half of 2023. Using
industry-leading and proven technology, the facility will be the world’s
largest single-train ammonia synthesis loop and will raise the bar in terms of
the safe and efficient production and storage of ammonia.
The V&E team was
led by Kaam Sahely and Alan Alexander, with assistance from Karen Smith and
Creighton Smith on the debt and equity financing. Also assisting were Mark
Brasher, Stephanie Coco, Caroline McDonald and Ryan Logan on various project development
matters; Simone King, Erin MacMullin and Helena Zhang on the debt financing;
Nettie Downs on the equity financing; and Beto Cardenas on local tax matters.