Paraguay presented a project to install a fertilizer plant in Carmelo Peralta, in the department of Alto Paraguay, initially using Argentine natural gas and, in a second stage, production from the Paraguayan Chaco itself. The proposal was presented in Montevideo during a workshop on gas integration convened by the Latin American and Caribbean Energy Organization (OLACDE).
The delegation was led by engineer Julio Albertini, director of Hydrocarbons, and included Giuliano Franco, a technical adviser. Both represent the Vice Ministry of Mines and Energy (VMME), an agency under the Ministry of Public Works and Communications (MOPC).
The plan calls for the first phase to be supplied with gas from the Neuquén Basin, where Vaca Muerta is located. Later, the facility could operate with gas extracted in the Paraguayan Chaco. The stated goal is to produce nitrogen fertilizers for the Southern Cone market, with priority given to the Brazilian states of Mato Grosso and Mato Grosso do Sul.
Carmelo Peralta was chosen because of its connection to the Bioceanic Route and the Paraná-Paraguay Waterway. This combination could facilitate the transport of gas, raw materials and fertilizers to Paraguay, Brazil and other markets, although the proposal still depends on studies, investment and infrastructure to move beyond the project stage.
The assessment presented at the meeting indicates that the Southern Cone imports 92% of the nitrogen fertilizers it consumes, in a market estimated at US$6.5 billion a year. External urea purchases exceed US$4 billion. The same study, prepared with the participation of the Development Bank of Latin America and the Caribbean (CAF), indicates that Vaca Muerta gas could fully replace regional urea imports, but estimates that US$15 billion in investment would be needed, along with a 12 million-cubic-meter-per-day increase in gas supply.
The project is presented as part of an energy-integration strategy involving Mercosur and Chile, aimed at reducing dependence on imported agricultural inputs. For Paraguay, the plant would also represent an attempt to industrialize the Chaco, attract energy-intensive companies and turn Carmelo Peralta's position into a logistics hub between the road and river corridors.