Pampa Energía approves $2.7B Argentina urea plant, the largest in Latin America

Pampa Energía has approved construction of a $2.7 billion urea fertilizer complex at its Bahía Blanca industrial site in Buenos Aires Province, making it the largest urea plant in Latin America with a combined capacity of 6,000 metric tons per day, or 2.1 million metric tons per year.

MAIRE subsidiary Tecnimont will handle engineering, procurement, commissioning and start-up under a contract valued at approximately €1.3 billion ($1.5 billion). Nextchem, also part of the MAIRE group, will provide Stamicarbon’s urea melt and granulation technology, while KBR will supply its Purifier ammonia process for a single-train ammonia unit rated at 3,430 metric tons per day — the largest single-train ammonia plant in the region. The Argentine contractor SACDE will manage construction, with completion expected in 41 months.

The Argentina urea plant will sit adjacent to Pampa’s existing power generation assets, with direct access to gas pipelines feeding Vaca Muerta shale output, high-voltage transmission, water intake and a deep-water export port. Argentina currently imports most of its urea, and the facility is designed to eliminate that dependence while positioning the country as a regional fertilizer exporter. At peak construction, the project is expected to create more than 3,500 direct jobs.

The investment comes as Latin American countries seek to reduce reliance on Middle Eastern fertilizer shipments disrupted by the Strait of Hormuz crisis earlier this year. Argentina’s shale gas reserves give the project a feedstock cost advantage over imported LNG-based production.

Source: Bloomberg