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New agreement announced by Engeko expands the company’s participation in the resumption of Petrobras’ fertilizer plant in Mato Grosso do Sul, a project considered strategic for Brazilian agribusiness
Engeko Engenharia announced on Monday, June 22, 2026, the signing of its second contract with Petrobras to work on the construction of the Unit of Nitrogen Fertilizers III (UFN-3), located in Três Lagoas (MS). The announcement was made by the company on its social media and marks another advance in the resumption of a project that had been stalled for more than ten years.
The announcement comes just days after Petrobras confirmed the continuation of the project, considered one of the most important industrial investments of the state-owned company in the fertilizer segment. The completion of the unit is part of the company’s strategy to increase national production and reduce Brazil’s dependence on imported fertilizers.
Chronology of the resumption of UFN-3
The history of UFN-3 began in 2011, when Petrobras started the construction of the unit in Três Lagoas. The project progressed until it reached approximately 80% physical completion.
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However, in December 2014, Petrobras terminated the construction contract for the plant after issues involving the consortium responsible for the work. From that moment, the project entered a long period of suspension.
For more than a decade, the state-owned company conducted technical studies and economic evaluations to decide the future of the unit. Only in 2024 did Petrobras officially reintegrate the resumption of UFN-3 into its strategic planning.
In April 2026, the company completed important stages of contracting for the resumption of the works, defining companies responsible for different engineering, construction, and assembly packages.
On May 29, 2026, Engeko announced its first contract related to the resumption of UFN-3, consolidating its entry into one of the largest industrial projects underway in the country.
Less than a month later, on June 22, 2026, the company announced the signing of a second contract with Petrobras, expanding its participation in the project and reinforcing the execution schedule of the work.
Petrobras expects UFN-3 to be completed by 2029
The resumption of UFN-3 gained momentum after the project’s approval by Petrobras’ Board of Directors in April 2026. The state-owned company estimates investments close to US$ 1 billion to complete the unit.
According to the plan released by the company, the expectation is that the factory will start operations in 2029, becoming one of the largest producers of nitrogen fertilizers in Brazil.
Once completed, the unit will have the capacity to produce approximately 3,600 tons of urea daily and 2,200 tons of ammonia per day, essential products for the national agribusiness chain.
Project expected to create thousands of jobs in Mato Grosso do Sul
The resumption of activities has already started to stir the job market in Três Lagoas. The initial phases of mobilization of the contracted companies took place throughout May and June 2026.
The expectation reported by regional media is that Engeko will make about 2,000 direct hires during the construction stages under its responsibility.
Considering all the companies involved in the project, Petrobras estimates the creation of up to 8,000 direct and indirect jobs throughout the execution of the work.
The opportunities cover areas such as:
- Welding;
- Boilermaking;
- Industrial assembly;
- Carpentry;
- Civil construction;
- Equipment operation;
- Technical supervision;
- Engineering.
UFN-3 is strategic to reduce fertilizer imports
The completion of the factory is seen by Petrobras as an important step to strengthen national fertilizer production.
Currently, Brazil imports a large portion of the nitrogen fertilizers used by agribusiness. With the start of operations at UFN-3, the expectation is to increase domestic supply and reduce dependence on the external market.
The location of the unit in Três Lagoas was also considered strategic due to its proximity to important grain and agricultural commodity-producing regions in the Midwest and Southeast.
With the announcement of the second contract by Engeko on June 22, 2026, the project enters a new phase of execution and reinforces the expectation that UFN-3 will finally be completed after more than a decade of stoppage, becoming one of the largest ongoing industrial investments in Brazil.
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