Southern Cone gas potential could replace 100% of urea imports

A study by the Latin American and Caribbean Energy Organization (OLADE) and CAF suggests that the Southern Cone could replace 100% of its urea imports through competitive regional production. To achieve this, an estimated US$15 billion in investment is required to build new industrial capacity and incorporate approximately 12 million cubic meters of natural gas per day.

Currently, Mercosur countries and Chile import about 10 million tons of urea annually, valued at roughly US$4 billion. The region's dependence on nitrogenous fertilizers is even more pronounced, with 92% of the 21.4 million tons consumed annually being imported.

The proposal leverages gas expansion from Argentina's Vaca Muerta and Brazil's pre-salt reserves to fuel a regional fertilizer industry. This strategic integration aims to transform available energy resources into higher economic value and increased agricultural productivity across the region.