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This preview is part of the LATAM Petrochemical Outlook 2026, based on discussions held at the LARTC Petrochemical Advisory Board in partnership with APLA. 

Bringing together senior leaders from across Latin America’s petrochemical value chain, the session explored the strategic challenges, investment priorities and operational realities shaping the future of the region’s downstream industry. 

In this preview, we explore why Vaca Muerta and growing feedstock availability emerged as one of the region’s biggest long-term opportunities, and how industry leaders believe it could strengthen Latin America’s downstream value chain.

Turning resources into regional value 

While much of the Advisory Board discussion focused on the competitive pressures facing the petrochemical industry, participants also identified several reasons for optimism. 

One opportunity stood out above all others: the continued development of Argentina’s Vaca Muerta shale formation. 

As production continues to grow, industry leaders highlighted the increasing availability of natural gas liquids (NGLs) as a potential catalyst for new petrochemical investment across Latin America. Rather than viewing these resources solely as export opportunities, participants discussed the importance of capturing greater value through downstream processing and manufacturing within the region. 

The conversation reflected a broader ambition to strengthen Latin America’s industrial base by transforming locally produced feedstocks into higher-value petrochemical products.

More than a feedstock opportunity 

Participants agreed that growing feedstock availability alone is not enough to transform the industry. 

The real opportunity lies in building the infrastructure, partnerships and investment needed to convert those molecules into finished products closer to home. 

Doing so could help strengthen regional supply chains, improve competitiveness and create greater resilience across the downstream sector. 

The discussion also highlighted the potential for increased collaboration between countries, creating opportunities for a more integrated Latin American petrochemical market built around shared resources and complementary capabilities.

 Creating value beyond exports

One of the strongest messages to emerge from the discussion was the importance of retaining more value within the region. 

Rather than primarily exporting raw molecules, participants emphasised the opportunity to expand downstream processing capacity and develop higher-value petrochemical production. 

This approach not only strengthens industrial competitiveness but also creates wider economic benefits through investment, employment and greater supply chain resilience. 

As new feedstock sources become available, companies will increasingly be evaluating where future investment can deliver the greatest long-term value. 

A defining opportunity for the decade ahead 

While global market conditions remain challenging, participants viewed Vaca Muerta as one of the few developments capable of reshaping the region’s competitive position over the coming decade. 

Realising that opportunity, however, will depend on more than resource availability. Continued investment, regional collaboration and long-term strategic planning will all play an important role in determining how much value Latin America can capture from its growing feedstock base.

Feedstock strategy is just one of the themes explored in the LATAM Petrochemical Outlook 2026. 

The full report also examines competitiveness, refinery–petrochemical integration, digital transformation, investment priorities and the strategic challenges shaping the future of Latin America’s downstream industry. 

Download the report to explore the complete findings from the Advisory Board.

What’s next? 

These issues will be explored in greater depth at LARTC 2026, taking place 8–10 September 2026 in Buenos Aires, where refiners, petrochemical producers, technology providers and industry leaders will examine the operational, commercial and strategic opportunities shaping Latin America’s downstream sector. 

Download the full LATAM Petrochemical Outlook 2026 to explore the complete findings from the Advisory Board, or continue the conversation in person at LARTC 2026.