Exhibit 99.2 Terra Industries Inc.
600 Fourth Street
P.O. Box 6000
Sioux City, IA 51102-6000
Telephone: (712) 277-1340
Telefax: (712) 277-7383
www.terraindustries.com

NEWS

For immediate release Contact: Joe Ewing
(712) 277-7305
jewing@terraindustries.com

Terra Capital to offer $330 million of Senior Notes

Sioux City, Iowa (January 24, 2007)—Terra Capital, Inc., a subsidiary of Terra Industries Inc. (NYSE: TRA), intends to issue $330 million of Senior Notes due 2017. Terra will use the proceeds of the offering, together with available cash, to redeem its existing 12 7/8% Senior Secured Notes due 2008 and its 11 ¹/2% Second Priority Senior Secured Notes due 2010 and to pay related premiums, fees and expenses, pursuant to a cash tender offer announced Jan.10, 2007.

Terra Industries Inc. makes this statement to be consistent with the Securities and Exchange Commission’s “fair disclosure” guidelines and in advance of presentations to investors.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes or any other securities, nor will there be any sale of the Notes or any other securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The Notes will be issued in reliance on the exemption from the registration requirements provided by Rule 144A. None of the Notes have been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

About Terra
Terra Industries Inc., with 2005 revenues of $1.9 billion, is a leading international producer of nitrogen products and methanol.

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Forward-looking statements
This news release may contain forward-looking statements, which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about Terra Industries Inc.’s beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in Terra Industries Inc.’s most recent report on Form 10-K and Terra Industries Inc.’s other documents on file with the Securities and Exchange Commission. Terra Industries Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Note: Terra Industries’ news announcements are also available on its website, www.terraindustries.com.