What OCI Partners does

OCI Partners LP was a Delaware limited partnership formed in February 2013 to own and operate OCI Beaumont LLC, an integrated methanol and anhydrous ammonia production facility located on the U.S. Gulf Coast near Beaumont, Texas. The single-site facility co-produces methanol (912,500 metric tons/year design capacity) and anhydrous ammonia (331,000 metric tons/year design capacity) from natural gas feedstock, leveraging shared reformer, steam generator, waste heat boiler, and pressure swing absorption (PSA) infrastructure. Methanol volumes are the larger contributor to revenue and serve industrial buyers in Methanol-to-Olefins (MTO) conversion, fuel applications, and core derivatives (formaldehyde, MTBE, acetic acid); ammonia is sold to agricultural and industrial customers for downstream nitrogen fertilizers (urea, ammonium nitrate) and chemical applications.

The business model is straightforward commodity chemicals sales at market-driven benchmark prices — Tampa CFR ammonia contracts and U.S. weighted-average methanol contracts — with natural gas input costs in the $3.00-$3.32/MMBtu range driving margin sensitivity. Distribution is direct via dedicated state-of-the-art methanol (2014) and ammonia (2015) truck loading facilities, marine access through the Sabine-Neches waterway, and on-site ammonia tank storage. Pricing is unit-based with no public tier schedule; revenue is hardware/commodity sales only.

The company was taken private by its indirect parent OCI N.V. (a Netherlands-based global nitrogen and methanol producer with ~14 million metric tons/year of capacity across three continents and ~3,000 employees) in July 2018 via a tender offer at $11.50 per unit, with NYSE delisting on July 26, 2018. Since then OCI Partners LP has operated as an indirectly wholly-owned subsidiary of OCI N.V., with no further public financial disclosure. FY2017 revenue was $343M and FY2017 EBITDA was $127M (37% margin), the most recent disclosed full-year figures.

Name

OCI Partners

Legal name

OCI Partners LP

Website

https://ocipartnerslp.investorroom.com

Company type

Private

Founded year

2013

Operating status

Acquired

Headcount range

51–100 employees

Short description

OCI Partners LP owns and operates OCI Beaumont LLC, a single integrated methanol (912,500 MT/yr) and anhydrous ammonia (331,000 MT/yr) facility on the U.S. Gulf Coast near Beaumont, Texas, selling commodity chemicals to industrial and agricultural customers via direct and marine export channels; taken private by parent OCI N.V. in July 2018.

Ownership category

akta.pro rank

Headquarters

HQ city

Nederland

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Infrastructure, Personnel

Revenue model

1. Methanol Sales: Sale of methanol produced at the OCI Beaumont facility (design capacity 912,500 metric tons/year) to industrial customers, including MTO operators, fuel applications, and construction derivatives. Volume and realized pricing vary with global supply-demand and natural gas input costs.
2. Anhydrous Ammonia Sales: Sale of anhydrous ammonia produced at the OCI Beaumont facility (design capacity 331,000 metric tons/year) to agricultural and industrial customers, primarily for nitrogen fertilizers and downstream chemical applications.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels3 records

Core offering

OCI Partners LP owns and operates OCI Beaumont LLC, an integrated methanol and anhydrous ammonia production facility on the U.S. Gulf Coast near Beaumont, Texas, with design capacity of 912,500 metric tons/year of methanol and 331,000 metric tons/year of anhydrous ammonia. The facility co-produces both commodity chemicals from natural gas feedstock using shared reformer, steam generator, and utility infrastructure, and distributes the output via dedicated truck loading facilities, marine export access on the Sabine-Neches waterway, and on-site ammonia tank storage.

Product overview

OCI Partners LP operates a single integrated production asset — the OCI Beaumont facility on the U.S. Gulf Coast near Beaumont, Texas — rather than a software platform with discrete modules. Its product portfolio is built around two co-produced core commodity chemicals: Methanol (912,500 metric tons/year design capacity) and Anhydrous Ammonia (331,000 metric tons/year design capacity). These core products are supported by the OCI Beaumont Facility itself (the integrated asset) and a Distribution and Logistics capability that includes truck-loading facilities for both products, marine access via the Sabine-Neches waterway, and ammonia tank storage.

Differentiator

Problem solved

Functional benefit

Products and services

• Methanol Methanol is the primary commodity produced at the OCI Beaumont integrated facility, with a design production capacity of 912,500 metric tons per year. It is sold to industrial customers for chemical derivatives (formaldehyde, MTBE, acetic acid), fuel applications, and Methanol-to-Olefin (MTO) conversion.
• Anhydrous Ammonia Anhydrous ammonia is co-produced with methanol at the OCI Beaumont integrated facility, with a design production capacity of 331,000 metric tons per year. It is sold to agricultural and industrial customers for downstream nitrogen fertilizer manufacturing (urea, ammonium nitrate, phosphate fertilizers) and industrial nitrogen applications.

Quantifiable outcome

• $343M in 2017 revenue (up 33% from $258M in 2016)
• +3 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Five partnerships are on record, tiered flagship, core and minor.

• OCI N.V.flagshipStrategic or Co-development Partner · 26 July 2018OCI N.V. is the indirect parent company of OCI Partners LP. OCI N.V. completed a tender offer and Buyout in 2018, acquiring all publicly held common units and taking the Partnership private; the NYSE listing was delisted on July 26, 2018. OCI N.V. is a leading global producer and distributor of natural gas-based fertilizers and industrial chemicals, headquartered in the Netherlands and listed on Euronext Amsterdam under "OCI", with approximately 14 million metric tons/year of nitrogen fertilizer, methanol, and related product capacity across three continents.
• Baker Botts L.L.P.coreImplementation/ SI/ Consulting Partner · 19 June 2018Baker Botts L.L.P. acted as legal counsel to the Conflicts Committee of the Board of Directors of OCI Partners LP in connection with the OCI N.V. tender offer process.
• Tudor Pickering Holt & Co Advisors LPcoreImplementation/ SI/ Consulting Partner · 19 June 2018Tudor Pickering Holt & Co Advisors LP acted as financial advisor to the Conflicts Committee of the Board of Directors of OCI Partners LP in connection with the OCI N.V. tender offer process.
• OCI USA Inc.coreStrategic or Co-development Partner · 30 November 2016OCI USA Inc. is a related-party affiliate that entered into the November 30, 2016 amendment to OCI Partners' Term Loan B Credit Facility alongside OCI Beaumont LLC and the Partnership.
• Janus Methanol AGminorStrategic or Co-development Partner · 16 May 2011Janus Methanol AG was a joint venture partner with OCI Nitrogen in acquiring the integrated ammonia-methanol plant in Texas in May 2011. The plant was subsequently owned and operated by OCI Beaumont LLC.

Scale indicators9 records

Recent moves8 records

Expansion highlights5 records

Broad incumbents

• OCI N.V. Indirect parent of OCI Partners and one of the world's largest nitrogen fertilizer and methanol producers (~14M MT/yr). Operates the same commodity chemistries (methanol, ammonia, nitrogen fertilizers) at larger scale across three continents, providing a natural internal benchmark.
• LyondellBasell Industries: Global petrochemical major with significant methanol and olefins production. Competes in the same U.S. Gulf Coast petrochemical space and serves overlapping derivative customers (MTBE, acetic acid, fuels).
• Celanese Corporation: Major acetyls and engineered materials producer that consumes methanol as a feedstock and competes in methanol derivatives (acetic acid, MTBE). Provides a view into downstream derivative economics affecting OCI Partners' realized pricing.

Direct peers

• CVR Partners, LP: MLP focused on nitrogen fertilizer production (ammonia and urea ammonium nitrate) with a single-asset operating model. Closest structural peer to OCI Partners as a publicly traded nitrogen-focused MLP with concentrated single-site operations.
• Nutrien Ltd. World's largest fertilizer producer with integrated nitrogen (including ammonia) production. Comparable in serving agricultural nitrogen and industrial ammonia customers, with overlap in Tampa CFR ammonia pricing exposure.
• LSB Industries, Inc. U.S.-based producer of industrial and agricultural nitrogen products (ammonia, urea, ammonium nitrate) from natural gas. Comparable in feedstock, end-markets, and scale to OCI Partners' ammonia operations.
• CF Industries Holdings: Largest North American nitrogen fertilizer producer, with a major ammonia production footprint. Direct comparable for OCI Partners' anhydrous ammonia business, competing in agricultural nitrogen and industrial ammonia markets.
• Methanex Corporation: World's largest methanol producer with global production assets. Most direct comparable to OCI Partners' methanol business, competing for the same MTO, fuel, and derivative end-markets with similar commodity-driven economics.
• Yara International ASA: Global nitrogen fertilizer leader producing ammonia, urea, and related products. Competes with OCI Partners' ammonia output in global nitrogen markets and shares the same natural gas feedstock economics.

Emerging players

• Eastman Chemical Company: Specialty chemicals company with significant methanol and methanol-derivative exposure (including gasification-based methanol at its Kingsport, TN site). Provides a useful comparable on integrated chemical economics and end-market demand for derivatives.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries3 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about OCI Partners