Petrobras Reactivates Fertilizer Plant Construction in Southern Brazil

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Authorities from Brazil's state-owned oil company Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) have announced the reactivation of the construction of the fertilizer plant in Três Lagoas, Mato Grosso do Sul, also known as UFN3, which was halted in 2014 when it was 80% complete. The paralysis of this project occurred within the framework of legal investigations for embezzlement and fraud, also known as the "Lava Jato" operation. A decade later, the implementation of this project is being resumed as part of an investment plan that Petrobras plans to carry out during the next four years.

Petrobras carried out a financial feasibility study that showed the need to return to the fertilizer sector, so it finally decided to cancel the sale of this and other assets to private capital.

Other factors that have played an important role in this decision are the high demand for fertilizers in Brazil, generated by the impact of the conflict in Ukraine, and the need to reduce the dependence of Brazilian agriculture on fertilizer imports. The UFN3 plant is projected to help reduce this dependence on nitrogen fertilizers by 15%. The UFN3 fertilizer plant is designed to consume 2.3 million cubic meters of natural gas per day, separating and transforming it into 3,600 tons of urea and 2,200 tons of ammonia per day. The bidding process to complete the work will begin in December of this year, and the goal is to start operating the unit by the end of 2028.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here to view related reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).