Pampa Energía's board approved a $2.7 billion final investment decision to construct a granular urea production plant in Bahía Blanca, Argentina. This facility marks the first new fertilizer plant built in the country in approximately 25 years. The project will be the largest of its kind in Latin America.
The plant will have an annual production capacity of 2.1 million tons. Pampa Energía will supply natural gas from the Vaca Muerta shale formation and electricity to the facility. This structure reinforces the company's vertically integrated business model.
Executives anticipate the venture will generate $1 billion in annual revenue. The project aims to provide a new source of foreign currency through exports and import substitution. Development depends on qualifying for Argentina's Large Investment Incentive Regime.