Pampa Enters The Fertilizer Business By Building LatAm's Largest Urea Plant

Pampa Energía S.A. announces that its Board of Directors approved the final investment decision of US$2.7B to build a granular urea production plant in Bahía Blanca, in southern Buenos Aires Province (the ‘Project’). This milestone marks Pampa’s entry into the fertilizer business, a commodity that is critical for agricultural production and global food security, and is aligned with our strategy to monetize shale gas reserves in Vaca Muerta through the development of high value-added businesses while further strengthening the Company’s industrial profile.

The Project will be developed by Fértil Pampa S.A.U. (‘Fértil Pampa’), a wholly owned subsidiary of Pampa. The facility will occupy an 80-hectare site within the Bahía Blanca Industrial Complex and will have an annual production capacity of 2.1 million tons of granular urea, making it the largest urea plant in Latin America by production capacity. The Project includes the construction of an ammonia plant, a two-train granular urea plant with a combined production capacity of 6,000 tons per day, a desalination plant to supply process water, storage silos, and new logistics infrastructure at the Port of Bahía Blanca, including truck and vessel loading facilities for export operations.

The Project’s strategic location provides direct access to the Vaca Muerta natural gas pipeline system, one of Argentina’s main export ports, and Pampa’s thermal power plants and wind farms. Natural gas and electricity, two critical inputs that will be supplied primarily by Pampa, account for approximately 70% of urea production costs. This reinforces the competitive advantages of the Company’s vertically integrated business model while enhancing the Project’s operating efficiency and long-term profitability.

The fertilizer business will create a new source of foreign currency inflows for Argentina, with an estimated annual contribution of approximately US$1B through import substitution and increased exports. Brazil, which imports between 7 and 8 million tons of urea annually, is expected to be the Project’s primary market.

Completion is expected to take approximately 41 months and will be carried out by SACDE for the construction, while Tecnimont, a global leader in the execution of large-scale industrial projects, will focus on engineering and procurement. Tecnimont has a track record of more than 100 ammonia plants and over 75 urea plants worldwide. Process technology will be provided by Nextchem, through its subsidiary Stamicarbon, jointly with KBR, both recognized as global leaders in fertilizer production technologies. Tecnimont, Nextchem and Stamicarbon are part of Italy’s MAIRE Group.

At peak construction, the Project is expected to create more than 3,500 direct jobs, in addition to a significant number of indirect jobs throughout the supply chain. Once operational, the facility will employ approximately 300 people. Fértil Pampa will prioritize the hiring of local workers and suppliers from Bahía Blanca and the surrounding region, while also providing internal mobility within the Company.

In addition, Fértil Pampa submitted applications for the Project to qualify under Argentina’s Large Investment Incentive Regime (‘RIGI’) and the Province of Buenos Aires’s Strategic Investment Regime (‘REPIE’) on April 21, 2026 and June 10, 2026, respectively. Approval under both regimes is essential for the development of the Project. In particular, if the application under the RIGI is not approved, the Company may exercise its rights under the turnkey contract entered into with SACDE and Tecnimont, in accordance with its terms and conditions.

Marcelo Mindlin, Chairman of Pampa Energía, stated: ‘This represents the largest investment in Pampa’s history and the most significant project we have undertaken in many years. Argentina currently depends on fertilizers imported from distant regions exposed to considerable geopolitical uncertainty. This plant will provide Argentina with a reliable and competitive domestic supply of urea while creating new export opportunities across the region and international markets. It will generate valuable foreign currency revenues, expand into new markets, and transform Vaca Muerta’s natural gas into a high value-added product for one of Argentina’s most important economic sectors-its agricultural industry.’