The commissioning of Brazil’s **Petroleum Company’s new large-scale urea plant with a production capacity of 1.3 million tons will be delayed from the originally planned date of 2027 to 2029
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Recently, Petrobras announced that the commissioning of its new large-scale urea plant in Bahia state, in the northeast of Brazil, will be delayed from the originally planned date of 2027 to 2029. The project is designed with an annual production capacity of 1.3 million tons, and it is one of the key strategic projects in Brazil’s efforts to enhance its self-sufficiency in fertilizers and reduce its dependence on imports for agricultural purposes. Bagoil stated that this delay is mainly due to a variety of complex factors. The project approval process must meet stricter environmental licensing requirements, and ongoing tensions in the global supply chain have also affected the delivery timelines for key equipment. To ensure the advancement of the technical solutions and their long-term competitiveness, the company has decided to optimize the design of certain aspects of the project, which also requires more time to complete. The total project investment is expected to rise to around $2.8 billion as a result. This delay means that Brazil will need to maintain high levels of urea imports in the coming years, and its costs for agricultural inputs may continue to be affected by fluctuations in international market prices. Currently, there are still several urea production projects under construction around the world, and when these plants come online in 2029, they will face a new market supply and demand landscape.
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