The facility represents an estimated total investment of USD 1 billion, equivalent to approximately BRL 5 billion, to complete the remaining 19% of construction. Petrobras structured the procurement into multiple packages covering drainage, paving, administrative buildings, power systems, water and effluent treatment, ammonia production and storage, urea granulation, product storage, shipping facilities, and automation systems. This fragmented approach expands supplier participation, increases competition, and strengthens local supply chains according to the company.
Construction began in 2011 but halted in 2014 during Petrobras’ restructuring following Brazil’s heavy construction crisis. The Board of Directors approved the project’s return to the investment portfolio in April 2026 after technical and economic reassessment confirmed viability. Physical construction resumption is scheduled for 2027, with commercial operations targeted for late 2029. The plant will produce 3,600 tons daily of urea and 2,200 tons of ammonia, serving fertilizer markets and petrochemical sectors primarily in the Center-West, South, and Southeast regions.
The construction phase is expected to generate approximately 8,000 direct and indirect jobs, providing significant economic impact to Mato Grosso do Sul. Três Lagoas’ strategic location near major agricultural consumption centers and integration with logistics corridors to southern and southeastern Brazil enhances the facility’s competitive positioning. The project aligns with Petrobras’ 2026-2030 business plan allocating USD 15.8 billion to refining, transportation, marketing, petrochemicals, and fertilizers. Brazil’s heavy reliance on imported fertilizers, with Russia representing a significant supply source, makes domestic production capacity strategically critical for agricultural supply security and reducing exposure to international price volatility and geopolitical disruptions.
This article was curated and published as part of our South American energy market coverage.
