en.Wedoany.com Reported - Argentina's oil, gas, and power company Pampa Energía has officially decided to invest $2.7 billion in a fertilizer project. Located in Buenos Aires Province, the project will be implemented by its subsidiary Fértil Pampa, with an annual design capacity of up to 2.1 million tons of granular urea. Once completed, it will become the largest plant of its kind in the region.

The products are primarily intended to replace imports and expand exports. Brazil, as the main export target market, imports 7 to 8 million tons of urea annually.

The project includes several core facilities: an ammonia plant, a granular urea unit with two production lines (total design capacity of 6,000 tons per day), a seawater desalination plant to supply process water, storage silos, and new truck and ship loading logistics infrastructure at the port of Bahía Blanca. Key raw materials, natural gas and electricity, will be supplied by Pampa itself.

Construction company SACDE is responsible for project construction, while Tecnimont handles engineering and procurement. Process technology is provided by NextChem through its subsidiaries Stamicarbon and KBR. Tecnimont, NextChem, and Stamicarbon are all part of Italy's MAIRE Group.

Pampa is applying for preferential policies under Argentina's RIGI investment incentive regime and the REPIE regime of Buenos Aires Province. The company stated that approval of both regimes is crucial for project advancement. In particular, if the RIGI application is not approved, Pampa has the right to exercise relevant rights under the terms of the turnkey contracts signed with SACDE and Tecnimont.

Additionally, Pampa has sought multilateral support from IDB Invest and IFC for the fertilizer project. Its subsidiary TGS has also made a final investment decision on a $2.9 billion natural gas liquids project in Buenos Aires, with one goal being to monetize its natural gas assets in Vaca Muerta.