Pampa plans $2.7bn urea plant in Argentina

Pampa Energía (PAM) has approved a $2.7 billion investment to build a granulated urea fertilizer complex in the Polo Industrial and port area of Bahía Blanca, Argentina. The company plans for the facility to reach an output of about 2.1 million tonnes of urea per year, targeting this level by the end of 2029. The project is positioned as a large-scale industrial development intended to expand Argentina’s capacity in nitrogen fertilizers.

The company estimates the complex could contribute roughly $1 billion annually to Argentina’s economy through a combination of import substitution and exports. Brazil has been identified as the principal external market for the plant’s output. By focusing on both domestic supply and regional exports, the project is designed to support broader trade flows in fertilizer products.

The planned complex will include an ammonia plant and two urea production lines with a combined capacity cited at around 6,000 tonnes per day. The facility is to be sited on approximately 80 hectares in the Bahía Blanca industrial and port area. This location is intended to facilitate logistics, with direct access to maritime infrastructure and supporting utilities.

Beyond the core process units, the project foresees construction of a desalination plant and additional port infrastructure to handle export volumes. These elements are planned to ensure reliable water supply and efficient shipment of granulated urea to external markets. The integrated configuration is structured to support large, continuous production volumes over the long term.

Pampa framed the investment as a way to monetize natural gas from the Vaca Muerta shale basin. The complex will have direct connections to gas pipelines carrying production from that resource, using the gas as feedstock for ammonia and urea. This integration is intended to anchor a domestic value chain from upstream gas output to downstream fertilizer products.

To support the project’s financing and fiscal framework, Pampa has formally presented the initiative for inclusion in Argentina’s Régimen de Incentivo para Grandes Inversiones (RIGI). This step places the urea complex within the country’s regime for large investment projects. The company has framed this as part of a plan to reduce reliance on imported fertilizers while boosting export capacity.

Execution of the project is expected to span roughly three and a half years from start of works. During peak construction, Pampa anticipates employing more than 3,500 direct workers on site. Once in commercial operation, the complex is expected to provide around 300 permanent jobs, supporting ongoing plant operations and maintenance.

Engineering and procurement activities for the complex will be led by Tecnimont, the engineering and construction unit of MAIRE. SACDE has been appointed as the construction contractor. Technology partners named for the project include Nextchem, through Stamicarbon, and KBR, which are set to supply key process technologies for ammonia and urea production.