Mexico advances two nitrogen fertilizer projects as import risks mount

Mexico is advancing two fertilizer projects that could begin rebuilding domestic nitrogen production as global supply disruptions expose the risks of relying heavily on imports. Gas y Petroquímica de Occidente (GPO), a subsidiary of the state-owned energy complex, is developing an ammonia plant in Sinaloa, while private company Fermachem is building a urea facility in Durango.

The GPO project is part of the government’s broader effort to revive Mexico’s petrochemical industry and restore production capacity lost as aging Pemex facilities were shut down over the past two decades. The Sinaloa plant would produce ammonia for the domestic agricultural market, although its development timeline and expected capacity have not been detailed publicly.

In Durango, Fermachem is developing a granular urea plant aimed at supplying Mexico’s domestic market. The project’s nameplate capacity and commissioning date have not been publicly confirmed. The investment comes as Mexican farmers face higher fertilizer costs, with imported urea prices rising above $400 per metric ton during the Hormuz crisis.

Mexico imported about 2.5 million metric tons of fertilizer in 2025, with the U.S., Russia and China among its main suppliers. Disruptions to global trade routes and Russian export restrictions have highlighted the vulnerability of import-dependent markets. If both projects reach commercial production, they would restore part of Mexico’s lost nitrogen capacity, although the country would continue to rely significantly on imported fertilizers.

Source: World Fertilizer