Natural gas-driven production capacity: Brazilian nitrogen fertiliser plant commences operations, establishing a closed-loop oil-gas-fertiliser industrial chain

Petrobras announced in January 2026 that two nitrogen fertiliser plants in the northeastern states of Sergipe and Bahia had formally commenced urea production, providing a solid foundation for the future development of Brazil's fertiliser industry.

The Sergipe facility commenced ammonia production on 31 December 2025 and initiated urea production on 3 January 2026. The Bahia plant completed maintenance last month and is currently undergoing commissioning, with urea production expected to commence before the end of January.

Both plants will concurrently produce ammonia, urea, and ARLA 32 (automotive liquid reducing agent), with each facility representing an initial investment of R$38 million. The resumption of operations at these nitrogen fertiliser plants (FAFENs) has generated 1,350 direct jobs and 4,050 indirect positions. The plant in Laranjeiras, Sergipe, boasts a daily urea production capacity of 1,800 tonnes, accounting for approximately 7% of Brazil's national market share. The facility in Camaçari, Bahia, has a daily urea output of 1,300 tonnes, representing 5% of the national market share. Operations at the Bahia plant also encompass the ammonia and urea seaport terminal at Aratu Port in Candeias.

William França, Director of Industrial Processes and Products at Petrobras, stated: ‘These two nitrogen fertiliser plants, alongside our other domestic fertiliser facility in Paraná – Alacaria Nitrogen Fertiliser Company (ANSA) – will meet 20% of Brazil's urea demand. We anticipate that in the coming years, with the completion of the new plant in Mato Grosso do Sul, the share of domestic urea production capacity will increase to 35%.’

The nitrogen fertilisers produced will primarily restore Brazil's domestic supply capacity for key inputs in agribusiness, including agricultural urea and ruminant feed urea, while also serving textile, coatings, and pulp and paper industries. Additionally, manufacturing ARLA 32 will enable Petrobras to provide core material support for reducing vehicle emissions and protecting the environment.

Director William emphasised: ‘Brazil currently relies entirely on imports for its urea consumption. With the restoration of domestic production capacity, Petrobras will expand urea supply within the domestic market, reduce external dependency, and strengthen the resilience of the agro-industrial chain.’ He noted this represents a strategic initiative – utilising natural gas as the primary feedstock in the production process – which simultaneously expands the company's natural gas product distribution channels while generating multiple value streams for industry, agriculture, and the nation.