# Southern Cone fertilizer production integration > Live situation record from CLSTR: https://clstr.news/situations/southern-cone-fertilizer-production-integration > Updated: 2026-09-03T14:43:50.000Z. Sources: 4. Developments: 2. A study by the Latin American and Caribbean Energy Organization (OLADE) and CAF indicates that the Southern Cone could replace 100% of its urea imports through regional production, provided an estimated US$15 billion is invested to build industrial capacity and utilize approximately 12 million cubic meters of natural gas per day. Currently, the region imports about 10 million tons of urea annually, and 92% of the 21.4 million tons of nitrogenous fertilizers consumed in the region are imported. Following these findings, Paraguay proposed the installation of a fertilizer production plant in Carmelo Peralta, Alto Paraguay, to serve the Southern Cone. The project is designed to be implemented in phases, initially utilizing natural gas from Argentina’s Vaca Muerta formation before transitioning to gas from the Paraguayan Chaco. The facility aims to leverage the Bioceanic Route and the Paraguay-Paraná Waterway to reduce transport costs, specifically targeting agricultural demand in Brazilian states like Mato Grosso and Mato Grosso do Sul. ## Timeline ### 2026-09-03: Paraguay proposes fertilizer plant in Carmelo Peralta Paraguay proposes a new fertilizer plant in Carmelo Peralta using Argentine gas to supply the Southern Cone and reduce the region's heavy dependence on imported agricultural inputs. 2 sources. https://clstr.news/cluster/paraguay-proposes-fertilizer-plant-in-carmelo-peralta ### 2026-09-02: Southern Cone gas potential could replace 100% of urea imports A study by OLADE and CAF indicates that US$15 billion in investment could allow the Southern Cone to replace 100% of its urea imports by leveraging gas from Vaca Muerta and Brazil's pre-salt reserves. 2 sources. https://clstr.news/cluster/southern-cone-gas-potential-could-replace-100-of-urea-imports --- Cite as: Southern Cone fertilizer production integration. CLSTR, https://clstr.news/situations/southern-cone-fertilizer-production-integration