Can Vaca Muerta solve a historic problem of Argentine agriculture?
A RIGI-approved fertilizer project using nitrogen from the oil field could open doors for the country to export a key sector input La entrada Can Vaca Muerta solve a historic problem of Argentine agriculture? se publicó primero en Buenos Aires Herald .
The Vaca Muerta gas field in Argentina is not only driving a surge in the energy sector but also holds the potential to revolutionize the agricultural industry. One of the key issues in the country’s agricultural sector is the reliance on fertilizers, especially urea, which is currently imported from conflict-ridden Middle Eastern nations such as Saudi Arabia, Kuwait, and Oman. This import dependency leaves Argentina vulnerable to energy and fertilizer supply chain disruptions.
The Argentine government recently granted permission for Fértil Pampa, a venture led by Pampa Energía, to enter the Large Investment Incentive Regime (RIGI). The company plans to invest nearly US$2.7 billion into constructing a urea plant in Bahía Blanca, Buenos Aires province. Additionally, Profertil, the country’s largest fertilizer producer, is also planning to build another urea plant in the same city.
This development could see Argentina become self-sufficient in urea production, meeting domestic demand and even generating an exportable surplus that could be shipped to Brazil.
Brazil, which consumes between 7 million and 8 million tons of urea annually and accounts for nearly 80% of regional consumption, stands to benefit significantly from this domestic production. By producing urea domestically, Argentine farmers could lower the cost of this essential input, thereby boosting their profit margins. The proximity of Bahía Blanca to the Atlantic Ocean, coupled with Argentina’s strong agricultural exports, would make it a prime location for a nitrogen fertilizer hub in South America.
In 2025, the MERCOSUR countries and Chile imported a combined 10 million tons of urea, valued at around US$4 billion. This highlights the strategic importance of this commodity for a region that exports more than US$250 billion worth of agricultural products each year. The Vaca Muerta project could address a historic problem in Argentine agriculture by providing a reliable, cost-effective source of fertilizers, ultimately enhancing food security and boosting the country’s economy.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
