Pampa keeps $2.5bn urea plan alive as FID looms

Argentina’s Pampa Energía is advancing work on a proposed 2 million t/y urea plant but has not yet taken a final investment decision, the company said in its recent investor briefings.

The project is sized to use about 3 million cubic metres of natural gas per day and is estimated to cost $2.0–$2.5 billion. Management described ongoing front‑end engineering, EPC negotiations, environmental permitting and project‑finance structuring as the current focus.

CEO Gustavo Mariani said “the decision is not – has not been taken yet” and indicated any go‑ahead would be accompanied by a dedicated investor event to explain the rationale. Mariani underlined the industrial logic: gas represents roughly 65% of urea production costs and Argentina remains a net urea importer while South America runs a multi‑million‑tonne supply deficit.

Pampa expects a mix of domestic and export sales, although financing covenants may require higher export volumes in early years and influence where product is sold. Management said full capex, returns and financing details will be disclosed only after a final investment decision, which the company is targeting by late 2026.

The fertiliser plant competes for capital with other growth projects, including upstream oil and midstream pipeline development; Pampa intends to ring‑fence the venture and use project finance plus equity to protect core ratios.