Petrobras to restart UFN-III nitrogen fertilizer plant in Três Lagoas

Key highlights
  • Investment of more than R$5 billion and works to start this month under new PAC support.
  • Start of operations scheduled for 2029.
  • Nominal capacity: 3,600 t/day of urea and 2,200 t/day of ammonia.
  • Expected to meet about 15% of Brazil's urea demand and generate roughly 8,000 direct and indirect jobs.

Project restart and schedule

Petrobras signed contracts with the winning companies to finalize construction of the Nitrogenated Fertilizers Unit (UFN‑III) in Três Lagoas (MS). With support from the new PAC and investments exceeding R$5 billion, works are set to begin this month on what is a 100% Petrobras enterprise. Operations are scheduled to start in 2029 and the project is expected to create about 8,000 direct and indirect jobs.

Capacity and market impact

The unit's nominal capacity is projected at 3,600 tons per day of urea and 2,200 tons per day of ammonia. Ammonia is a feedstock for fertilizers, the chemical industry and refrigeration; urea is one of Brazil's most demanded nitrogen fertilizers, with national consumption around 8 million tons per year. The plant is expected to meet about 15% of national urea demand and is strategically located to serve the Centre‑West, which accounts for roughly 40% of Brazil's urea consumption.

Strategic rationale

Petrobras restarted the project after technical and economic feasibility studies aimed at expanding its natural gas market and reducing imports and external supply dependence. The UFN‑III incorporates modern equipment and technologies to achieve high industrial efficiency.

Local employment and socio‑environmental actions

Petrobras plans to expand its Autonomy and Income Program in Três Lagoas, with about 1,400 vacancies for initial and continuing (FIC) and technical courses to boost local employability in the oil and gas segment; the program operates in 10 states in partnership with SESI, SENAI and the Federal Institutes of Education, Science and Technology. Separately, Petrobras is funding five socio‑environmental projects in Mato Grosso do Sul with R$27 million through 2030, two focused on Education and Sustainable Economic Development in Três Lagoas and others in the Forests line, benefiting around 8,000 people in the state.

Source: Petrobras