Commits US$ 2,7 Billion to Build Latin America's Largest Urea Plant

Pampa Energía S.A. has approved the Final Investment Decision (FID) for a $2.7 billion investment to build Latin America's largest granular urea plant in Bahía Blanca, Buenos Aires Province, Argentina. The project, the largest in the company's history, marks its entry into the fertilizer sector while adding value to natural gas from Vaca Muerta.

The project will be developed by Fertil Pampa S.A.U. a wholly owned subsidiary of Pampa Energía, on an 80-hectare site within the Bahía Blanca Industrial Complex. Once operational, it will produce 2.1 million tons of granular urea annually, the largest capacity in Latin America.

The integrated complex includes a world-scale ammonia plant, a two-train granular urea plant with a combined capacity of 6,000 tons per day, a desalination plant, storage silos, and new logistics infrastructure at the Port of Bahia Blanca, including truck loading facilities and marine export terminals.

The site provides direct access to the Vaca Muerta gas pipeline network, one of Argentina's main export ports, and Pampa Energia's thermal power plants and wind farms. As natural gas and electricity account for approximately 70% of urea production costs, the company's integrated business model is expected to lower costs and improve long-term competitiveness.

The investment is projected to generate approximately $1 billion annually through import substitution and fertilizer exports, reducing Argentina's dependence on imported fertilizers while creating a new source of foreign currency.

Brazil, which imports approximately 7–8 million tons of urea annually, is expected to become the project's principal export market, supported by Bahía Blanca's strategic logistics and port infrastructure.

Construction is expected to take 41 months. SACDE will lead construction, while Tecnimont will oversee engineering and procurement. Tecnimont has delivered more than 100 ammonia plants and over 75 urea plants worldwide. Process technologies will be supplied by Nextchem, Stamicarbon, and KBR. Tecnimont, Nextchem,and Stamicarbon are part of Italy's MAIRE Group.

Fértil Pampa applied under Argentina's Large Investment Incentive Regime (RIGI) on April 21, 2026, and the Strategic Investment Regime of Buenos Aires Province (REPIE) on June 10, 2026. Approval under both frameworks is considered essential for project execution.

According to Chairman Marcelo Mindlin, the investment will strengthen Argentina's fertilizer security, expand exports, generate foreign currency, and transform Vaca Muerta's natural gas into a high-value industrial product supporting agriculture.

With a $2.7 billion investment, 2.1 million tons of annual capacity, 6,000 tons of daily output, an 80-hectare site, a 41-month construction schedule, and an estimated $1 billion annual economic contribution, the project positions Argentina as a regional leader in fertilizer production. (*)

 

Editor : S. Anwar