Lula signs $5 bn deal to restart Petrobras nitrogen fertilizer plant in Mato Grosso do Sul

President Luiz Inácio Lula da Silva signed contracts on 25 June 2026 to resume construction of the Unidade de Fertilizantes Nitrogenados III (UFN‑III) in Três Lagoas, Mato Grosso do Sul. The project, halted since 2015, will receive more than R$ 5 billion from the Novo Programa de Aceleração do Crescimento (PAC). Work is slated to begin in July 2026 with commercial operation expected in 2029. When completed, the plant will produce about 1.3 million tonnes of urea and 70 000 tonnes of ammonia per year – roughly 16 % of Brazil’s urea demand – and is projected to create around 8 000 direct and indirect jobs. Lula emphasized national sovereignty, saying “Podem ficar certos, esse país vai construir sua soberania, sendo independente de importação de fertilizantes dos outros países.” He also quoted “Agora vai. Era pra ter começado bem antes.” The ceremony, attended by Petrobras president Magda Chambriard, also featured remarks on broader energy policy, including a plan to import diesel in July and a warning that artificial intelligence could become a “monster” that escapes human control. The government frames the project as strategic for food security and reducing reliance on imports.