Petrobras has restarted urea production at the Bahia Fertilizer Plant (Fafen BA) in Camaçari, a key move to cut Brazil’s reliance on imported nitrogen fertilizers. The restart was highlighted during a visit by President Luiz Inácio Lula da Silva and Petrobras president Magda Chambriard, who were joined by senior company officials.
The Bahia unit had been idle since 2019, saw a brief period of private operation, and was shuttered again in 2023. Petrobras says lower natural gas prices and planned long-term industrial investments made reactivating the plant economically viable. The effort is part of Petrobras’ 2026–2030 strategic plan to boost domestic fertilizer production and expand industrial use of natural gas.
Petrobras invested about BRL 100 million to bring the plant back online. The facility is currently producing roughly 1,300 tonnes of urea per day, which the company estimates will cover around 5 percent of Brazil’s nitrogen fertilizer demand. The restart is also expected to generate about 3,600 direct and indirect jobs.
Urea from Fafen BA will supply major agricultural sectors, including corn, sugarcane, coffee, wheat, cotton and livestock feed production. Company leaders said the local production will help stabilize supply and reduce exposure to international market shocks.
Chambriard said Petrobras is moving to revive additional fertilizer sites: Fafen Sergipe, Fafen Ansa and the Nitrogen Fertilizer Unit 3 in Mato Grosso do Sul. With the four facilities back in operation by 2028, Petrobras aims to meet nearly 35 percent of Brazil’s domestic nitrogen fertilizer needs, significantly lowering the nation’s dependence on imports.
Beyond fertilizers, Petrobras announced broader investments for Bahia’s energy sector. The company plans about USD 3.5 billion in oil and gas exploration projects over the next five years and signaled further spending on biodiesel initiatives, which it expects will create additional jobs in the region.
Company officials framed the Bahia restart as part of a wider industrial revival strategy that leverages competitive gas prices and targeted capital expenditures to rebuild Brazil’s fertilizer supply chain.
This report is based on information released by Petrobras and coverage from news agencies.
