Argentina Approves Pampa's $2.7 Billion Urea Project for Inclusion in RIGI

en.Wedoany.com Reported - On September 7, Argentina's Ministry of Economy published Resolution No. 1468/2026 in the Official Gazette, formally approving the inclusion of Fértil Pampa SAU's "Fertilizantes" project in the Large Investment Incentive Scheme (RIGI) and designating it as a Long-Term Strategic Export Project (PEELP). Located in the Ingeniero White port area of Bahía Blanca, Buenos Aires Province, the project is being developed by Fértil Pampa, a wholly-owned subsidiary of Pampa Energía. The scope of construction includes two urea units with corresponding granulation lines, one ammonia unit, as well as port and auxiliary facilities.

Each of the two urea production lines has a design capacity of 3,000 tons per day, totaling 6,000 tons per day, with the project planning an annual urea production capacity of approximately 2.1 million tons. The supporting ammonia unit has a design capacity of 3,450 tons per day. The project will use Vaca Muerta natural gas as its primary feedstock, and the granular product from the urea units will be transported domestically and exported through the Bahía Blanca port system. The RIGI application approved by Argentine authorities this time covers the entire investment plan for the project's construction, operation, and management.

Pampa Energía's Board of Directors approved the project's Final Investment Decision on July 17, with a total investment of approximately $2.7 billion. The project covers an area of approximately 80 hectares and, in addition to the ammonia and urea production units, includes a seawater desalination facility, urea storage silos, a truck loading system, and port ship-loading facilities. According to the project schedule previously announced by Pampa, production is expected to commence by the end of 2029.

The project's engineering contract has been awarded to a consortium formed by Tecnimont and Argentina's SACDE. According to publicly available information, the contract value is approximately $1.5 billion. Tecnimont is responsible for engineering design, international procurement, commissioning, and start-up, while SACDE is responsible for civil works, installation, and construction at the Bahía Blanca site. The engineering package also includes urea technology from Nextchem and Stamicarbon, while the ammonia unit employs KBR Purifier technology.

The Argentine RIGI resolution also confirms that Fértil Pampa is required to implement a local supplier development plan. Under RIGI rules, the project has been included in the "Oil and Gas – Petrochemicals and Fertilizers" category and, as a Long-Term Strategic Export Project, will receive arrangements related to tax, customs, and foreign exchange regimes. The RIGI application for this project was initially submitted on April 21, with an estimated investment of approximately $2.4 billion at the time, which was subsequently adjusted to approximately $2.7 billion after the Final Investment Decision was completed.