Brazil has moved to restart construction of Petrobras' UFN-III nitrogen fertilizer complex in Três Lagoas, Mato Grosso do Sul, signing the contracts required to complete a project that has been halted since 2015. The plant is part of the country's infrastructure acceleration program and is expected to receive more than R$5 billion in investment.
Commercial operations are scheduled to begin in 2029. At full capacity, the complex is designed to produce 3,600 tonnes of granulated urea and 2,200 tonnes of ammonia per day. Annual urea output is projected at roughly 1.3 million tonnes, equivalent to about 16% of national demand.
The location places new production close to Brazil's main agricultural consumption belt. The Center-West accounts for around 40% of national urea demand, driven by corn, sugarcane, cotton and pasture systems. Três Lagoas also offers logistical proximity to farming centers in Mato Grosso, Mato Grosso do Sul, Goiás, Paraná and São Paulo.
That geography is central to the project's economic role. Domestic production near major consuming regions can shorten supply routes, reduce exposure to maritime imports and improve delivery reliability during planting cycles. It may also lower part of the logistics burden borne by rural producers far from coastal entry points.
UFN-III is one of four fertilizer assets in Petrobras' current portfolio, alongside Fafen-BA, Fafen-SE and ANSA. With the four units operating, the company projects that domestic production could supply about 35% of Brazil's urea market by 2029.
The project therefore changes more than industrial capacity. It redraws part of Brazil's fertilizer map by connecting state-backed production, inland agricultural demand and a broader strategy to reduce external dependence in a sector that directly affects food production costs and national supply security.
