Mitsubishi Gas Chemical begins taking delivery of blue ammonia from INPEX

Mitsubishi Gas Chemical has begun taking delivery of ammonia produced by INPEX's Kashiwazaki Hydrogen Park blue hydrogen and ammonia demonstration project in Kashiwazaki, Niigata Prefecture, with offtake starting October 22, 2026. The feedstock gas comes from INPEX's domestic Minami-Nagaoka gas field, and the CO2 generated in production is injected into a depleted reservoir at the Hirai area of the Higashi-Kashiwazaki gas field under CCUS. Mitsubishi Gas Chemical plans to use the ammonia at its Niigata plants and supply nearby customers through its logistics network.

Key facts

Market context

Ammonia is one of the most widely produced industrial chemicals, used mainly as a feedstock for nitrogen fertilizers such as urea and ammonium nitrate, and also in explosives, nitric acid, and various chemical intermediates. Demand therefore tracks agricultural cycles and industrial production. Blue ammonia is conventional ammonia made from natural gas-derived hydrogen, with the resulting CO2 captured and stored, which is why it is increasingly discussed as a lower-carbon option as buyers face emissions-reduction targets. Ammonia is also being studied as a hydrogen carrier and fuel for power and shipping. Projects of this kind can add modest volumes of lower-carbon supply in regional markets, potentially easing pressure on buyers who need certified low-emission material, while the broader price effect depends on how much capacity comes online relative to total demand.

Source: official release on mgc.co.jp. Summary and context written by Market Krystal.