Projects between YPFB and Petrobras would cover 40% of the urea demand in Brazil

This YPFB release was published using machine translation.

Brasilia, October 26, 2023 (AN-YPFB).- The probable participation of Petróleo Brasileiro SA (Petrobras) and Yacimientos Petrolófilos Fiscales Bolivianos (YPFB) in three fertilizer projects will cover 40% of the demand for urea in Brazil, this announced Tuesday the Minister Counselor and Chargé d'Affaires of the Bolivian Embassy in Brazil, Horacio Villegas Pardo.

“Brazil consumes 12 million tons of urea annually. If these three projects are consolidated, they would provide 4.5 million tons of urea, an amount that would cover approximately 40% of the Brazilian market. Rondonia, Mato Grosso and Mato Grosso do Sul are the largest agribusiness producers and are states close to Bolivia,” said Villegas Pardo.

These are the Tres Lagoas Urea Plant projects, the Cuiabá Plant (both in Brazil) and the second Ammonia and Urea Plant planned for Puerto Quijarro, located in the Germán Busch province of Santa Cruz. These projects were considered at the technical table between both oil companies within the framework of the energy agenda between Bolivia and the Federative Republic of Brazil.

“We have enough natural gas to meet our domestic market, with our industrialization projects such as fertilizer plants. We are in negotiations with Petrobras and their vision today toward Bolivia is very important, since they are sure that there are large volumes of gas remaining in our territory and they have every intention of investing,” said Armin Dorgathen Tapia, president of YPFB.

By virtue of the commercial and operational success represented by the “Marcelo Quiroga Santa Cruz” Ammonia and Urea Plant, the president of the Plurinational State of Bolivia, Luis Alberto Arce Catacora, commissioned studies on this second petrochemical complex that will have double the capacity. nominal production than the current plant.

Brazil consolidated itself as the main buyer of urea produced by YPFB in its petrochemical complex, which has a production capacity of 630,000 tons per year. The plant is located in the town of Bulo Bulo in the department of Cochabamba and has one of the best technologies in Latin America.

The project for the new petrochemical complex is in the engineering phase. YPFB has identified enormous business potential for urea in the neighboring country, maximized by current market conditions and Bolivia's competitive advantages as an important player in the agrofertilizer industry.

“In the technical meeting, Petrobras was presented with the general details of the project such as: location, scope, production capacity and others. They have been expressed the openness that YPFB has regarding possible interests in an association for a joint investment in which Petrobras has expressed its interest. Likewise, they are interested in YPFB providing them with gas for their fertilizer plants,” said Luciano Montellano, vice president of Operations at YPFB.