Pampa Energía’s $2.7 billion urea plant in Bahía Blanca will produce 2.1 million tonnes of granulated urea annually, representing the company’s largest-ever investment. The facility is scheduled to begin operations in late 2029, with production split between domestic Argentine consumption and exports primarily directed to Brazil. Construction will generate 3,500 direct jobs at peak activity, with 300 permanent positions once operational. The project is expected to contribute approximately $1 billion annually through import substitution and export revenues.
The company selected Italian group MAIRE’s Tecnimont and Argentine contractor SACDE for turnkey construction under a three-and-a-half-year timeline. Technical scope includes an ammonia unit, two urea plants, two granulation units and a desalination facility to supply process water. Supporting infrastructure encompasses dedicated port facilities, with a dock in Bahía Blanca designed to handle bulk carriers of 30,000 to 60,000 tonne capacity. The terminal is projected to service 40 to 50 vessels annually and will be operational approximately 33 months into construction.
Mindlin characterized Brazil as the natural market for Argentine urea production, emphasizing geographic proximity versus current long-distance supply chains. The integration opportunity aligns with Argentina’s transition from gas importer to self-sufficient producer and prospective exporter, driven by Vaca Muerta development. During the meeting, officials analyzed supply chain integration possibilities and Argentina’s potential as a closer regional source for agricultural inputs critical to Brazilian production.
Beyond fertilizers, Mindlin recently assumed leadership of the investor group controlling InterCement, Brazil’s third-largest cement company and owner of Loma Negra, Argentina’s market leader. Pampa Energía, valued at $4.6 billion on the Buenos Aires exchange, maintains leverage at 1.4 times EBITDA, reflecting the company’s conservative financial positioning alongside aggressive acquisition strategy. The 20-year-old energy conglomerate operates across electricity generation and transmission, oil and gas exploration, production and transport, with the urea venture marking expansion into fertilizer manufacturing.
This article was curated and published as part of our South American energy market coverage.
