Pampa ADR: Turning Vaca Muerta Gas Into a Competitive Fertilizer Franchise

Research evidence excerpt

Pampa ADR: Turning Vaca Muerta Gas Into a Competitive Fertilizer Franchise

J P M O R G A N Latin America Equity Research

19 July 2026

Pampa ADR Neutral

PAM, PAM US

Turning Vaca Muerta Gas Into a Competitive Fertilizer Price (17 Jul 26):$81.91

Franchise

Latam Oil, Gas & Petrochemicals

Our take: the urea investment marks a strategic step in Pampa's Milene Clifford Carvalho AC

diversification, monetizing Vaca Muerta's shale gas at higher value-added. (55-11) 4950-3475

Pampa Energía announced that its Board approved a final investment decision milene.carvalho@jpmorgan.com

(FID) of $2.7B to build its granular urea production plant in Bahía Blanca, in Henrique Cunha, CFA

southern Buenos Aires Province. The project marks Pampa’s entry into the (55 11) 4950 3623

fertilizer business and advances its strategy to monetize Vaca Muerta shale gas henrique.r.cunha@jpmorgan.com

reserves while strengthening the company’s industrial profile. Chairman Marcelo Rodolfo Angele, CFA

Mindlin described it as "the largest investment in Pampa's history and the most (55-11) 4950-3888

rodolfo.r.angele@jpmorgan.com

significant project we have undertaken in many years." Below we summarize the Banco J.P. Morgan S.A.

key elements of the announcement.

• A project that deepens Pampa’s vertical integration, and will be the largest

urea plant in Latin America by capacity. The plant will be developed by

wholly owned subsidiary Fértil Pampa on an 80-hectare site within the Bahía

Blanca Industrial Complex, with an annual production capacity of 2.1 million

tons of granular urea. The scope includes an ammonia plant, a two-train

granular urea plant (combined 6,000 tons/day), a desalination plant for process

water, storage silos, and new logistics infrastructure at the Port of Bahía