Vaca Muerta opens regional opportunity for urea production
The availability of gas from Vaca Muerta and Brazilian presalt could boost a new regional urea industry and reduce the Southern Cone's dependence on imported fertilizers. A study by the Latin American and Caribbean Energy Organization (OLACDE) and CAF estimated that development would require investments close to USD 15 billion.
The region currently imports approximately 10 million tons of urea per year, valued at around USD 4 billion. In the broader nitrogen fertilizer market, Mercosur and Chile consumed 21.4 million tons during 2025 but produced only 1.8 million, meaning 92% of demand was met through external purchases worth USD 6.513 billion.
Complete substitution of urea imports would require approximately 12 million cubic meters per day of natural gas and the construction of new plants. Gas is one of the main industrial cost components: a facility with capacity to produce one million tons annually needs around 1.7 million cubic meters per day.
Brazil drives regional demand
Brazil accounts for approximately 80% of regional fertilizer consumption and emerges as the primary potential destination for additional production. Meanwhile, the country has greater availability of presalt gas and could recover capacity through reactivation of Petrobras plants.
In Argentina, two initiatives could contribute up to 3.5 million tons of urea annually, a volume sufficient to cover domestic imports and generate exportable surpluses. Competitiveness will depend on gas access, infrastructure, financing, and a regulatory framework that enables transforming the resource into higher value-added products.
The analysis also considers existing capacity utilization. The region has approximately 4.5 million tons annually for fertilizer production, though in 2025 it operated at 39%. Additionally, four projects in development or evaluation could add another five million tons. Bolivia's experience, with its Bulo Bulo plant reducing urea imports and exporting part of its output, is presented as a regional precedent.
Information from Mejor Energía.