Latin America
13 May 2026
Petrobras restarts UFN-III fertiliser project with $1bn investment
Written by Natalie Noor-Drugan
Petrobras has approved the resumption of construction on its long-delayed UFN-III nitrogen fertiliser plant in Três Lagoas, signalling a renewed push into Brazil’s domestic fertiliser market. The decision, confirmed by the board, aligns with the company’s 2026–2030 business plan and follows a full reassessment of the project’s economics.
The company said the project demonstrated “economic attractiveness”, with a positive net present value across all evaluated scenarios. Estimated investment to complete the plant stands at around $1 billion, with commercial operations targeted for 2029.
Construction is expected to restart in the first half of 2026, following final contracting and agreement signings.
Return to fertilisers
The UFN-III unit has been mothballed since 2015. Petrobras decided in 2023 to re-enter the fertiliser segment, citing both technical and economic feasibility. The move supports broader efforts to expand Brazil’s gas market and reduce reliance on imported fertilisers.
Petrobras stated the approval process “strictly adhered to corporate governance practices and current internal regulations”.
Strategic capacity and market impact
UFN-III is designed to produce around 3,600 tonnes per day of urea and 2,200 tonnes per day of ammonia. Of the ammonia output, 180 tonnes per day will be surplus for sale.
The plant’s location places it close to major agricultural markets including Mato Grosso, Goiás and São Paulo. Petrobras expects this proximity to improve supply reliability for fertiliser demand, particularly for urea, which sees annual consumption of around 8 million tonnes in Brazil.
Technology and efficiency focus
The company said the project will incorporate “modern equipment and state-of-the-art technologies”, aimed at delivering high industrial efficiency.
Urea remains the most widely used nitrogen fertiliser in Brazil, supporting key crops such as corn, sugarcane and coffee, while ammonia serves as a critical input for both fertiliser and petrochemical production, the company said.
