Power generation increased 14% year-over-year, outpacing national system growth through enhanced vertical integration between proprietary gas production and thermal generation assets. CEO Gustavo Mariani attributed improved efficiency and competitiveness to this operational linkage between upstream gas and power businesses.
The company approved final investment decision for a $2.7 billion urea plant in Bahía Blanca, representing Pampa’s largest single capital commitment and entry into fertilizer production. The facility will produce 2.1 million tons annually, exceeding current output from Profertil, Argentina’s sole existing urea manufacturer also located in Bahía Blanca. Construction requires 41 months with production start targeted for 2030, creating 3,500 direct construction jobs and 300 permanent operations positions. The project obtained RIGI pre-approval and is projected to generate approximately $1 billion annually through export revenues and import substitution.
RIGI approval for Rincón de Aranda enables a $4.5 billion investment plan including development of the block’s northern zone, additional well drilling, and extended production plateau targeting 45,000 barrels daily. Combined with the urea project, total RIGI-backed commitments exceed $7.2 billion.
Financial performance reflected operational gains, with $415 million adjusted EBITDA driven by hydrocarbon production growth and diversified business contribution. The company maintains high liquidity, conservative leverage ratios, and manageable debt maturity profile despite the substantial investment program.
Simultaneously, Pampa confirmed closure of its synthetic rubber plant at the Puerto General San Martín petrochemical complex, initiating workforce reduction through what union representatives characterize as compulsory voluntary retirements. The timing underscores strategic capital redeployment toward hydrocarbon and fertilizer opportunities while exiting legacy petrochemical operations.
This article was curated and published as part of our South American energy market coverage.
