Petrobras signs contract to resume construction of 5 billion reais nitrogen fertilizer plant
2026-07-01 11:08
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en.Wedoany.com Reported - This Thursday (June 25), Petrobras formally signed a contract with the winning bidder to complete the construction of the nitrogen fertilizer plant (UFN-III) located in Três Lagoas, Mato Grosso do Sul (MS). Brazilian President Luiz Inácio Lula da Silva attended the signing ceremony. The project, with an investment exceeding 5 billion reais, is supported by the new PAC (Growth Acceleration Program). Construction will begin this month, marking the restart of this 100% Petrobras project. The construction is expected to create approximately 8,000 direct and indirect jobs, with production planned to start in 2029.

The facility is designed with a nominal capacity of 3,600 tons of urea per day and 2,200 tons of ammonia per day. Ammonia is a key raw material for the fertilizer industry and is also used in the chemical industry and refrigeration; urea is one of the most demanded nitrogen fertilizers in Brazil, with domestic consumption of about 8 million tons per year. The plant is expected to meet approximately 15% of domestic urea demand. Agriculture absorbs this output in crops such as corn, sugarcane, coffee, wheat, and cotton, while in livestock farming, urea is used as a feed supplement for ruminants.

UFN III is strategically located to serve the Central-West region market, which accounts for about 40% of Brazil's urea demand. Local production helps improve supply reliability to meet the growing domestic demand for urea fertilizers, while also positively impacting the agricultural, livestock, and agro-industrial chains. The plant uses modern equipment and technology, achieving high industrial efficiency indicators. The facility has been idle since 2014, and Petrobras decided to resume investment based on technical and economic feasibility studies to expand the company's natural gas market, reduce imports, and decrease dependence on external supply.

Petrobras plans to extend the "Autonomy and Income Program (Programa Autonomia e Renda)" to Três Lagoas, promoting the use of local labor. It is expected to provide approximately 1,400 slots in the city, including primary and continuing education courses (FIC courses) as well as technical courses. The program is a partnership between Petrobras and SESI (Social Service of Industry), SENAI (National Service for Industrial Training), and federal education, science, and technology institutes, aiming to provide vocational qualification training for socially disadvantaged individuals and expand employment opportunities in the oil and gas industry.

Also in Mato Grosso do Sul, Petrobras is implementing five other social and environmental projects, with investments totaling 27 million reais, continuing until 2030. Two of these projects are carried out in Três Lagoas, focusing on education and sustainable economic development, while the remaining projects involve the forestry sector. Approximately 8,000 people in the state benefit from these initiatives.

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