Petrobras nears restart of Bahia fertilizer plant as Brazil seeks to cut import dependence

Petrobras is preparing to restart operations at its Bahia Nitrogen Fertilizer Plant, known as FAFEN-BA, marking a step toward expanding Brazil’s domestic fertilizer output and reducing reliance on imports.

The facility, located in Camaçari in the northeastern state of Bahia, is in the final stages of maintenance and is expected to resume production in January 2026, according to the state-controlled energy company. Commissioning activities are already under way, with teams testing systems and aligning utilities such as nitrogen, compressed air and cooling water to ensure a safe and efficient restart.

A key milestone was reached this month with the signing of a natural gas transportation contract between Petrobras and local distributor Bahiagás. The agreement provides for the delivery of up to 1.2 million cubic meters of piped gas per day to the plant, securing a critical feedstock for ammonia and urea production.

Petrobras executives say the restart of FAFEN-BA will help rebuild Brazil’s capacity to produce strategic inputs for its large agribusiness sector while creating an additional outlet for domestically produced natural gas. The move also represents Petrobras’ renewed engagement in the fertilizer segment, which has been a focus of government efforts to strengthen food security.

Once operational, the unit will produce ammonia, prilled urea and ARLA-32, a urea-based solution used to reduce emissions from diesel engines. Products will be handled through the ammonia and urea maritime terminals at the Port of Aratu, in the municipality of Candeias.

Brazil is one of the world’s largest agricultural producers but remains heavily dependent on imported fertilizers, particularly nitrogen-based products. The restart of FAFEN-BA is part of broader efforts to increase national production capacity amid ongoing volatility in global fertilizer markets.