Petrobras has outlined plans for an investment of approximately BRL33bn ($6.09bn) in refining and petrochemical projects in Rio de Janeiro, Brazil.
The investment will see R$29bn ($5.35bn) allocated from Petrobras capital expenditure (Capex), with an additional BRL4bn ($740m) dedicated to a synergistic project associated with the group’s assets.
The Boaventura Energy Complex in Itaboraí and the Reduc facility in Duque de Caxias will undergo integration projects, earmarked at BRL26bn ($4.8bn) from the 2025-2029 Business Plan (PN 2025-2029). These projects are currently in the bidding phase for service packages.
The new infrastructure is set to enhance S-10 diesel production by 76,000 barrels per day (bpd), comprising 56,000bpd from quality upgrades and 20,000bpd from added capacity.
According to Petrobras, its jet fuel production capacity will increase by 20,000bpd, alongside a 12,000bpd boost in Group II lubricating oil production.
Plans also include the development of a bio jet fuel plant at Boaventura, which will produce 19,000bpd of renewable fuels such as hydrotreated vegetable oil (HVO) and Sustainable Aviation Fuel (SAF).
Moreover, two gas-fired power plants will be integrated into the complex, taking part in capacity reserve auctions. Engineering for these plants is approved, leveraging existing synergies with the Itaboraí natural gas processing unit.
At Reduc, a proposed lubricant oil re-refining project is being evaluated. This venture could convert existing units for re-refining used oils, applying circular economy principles to generate high-value products.
The process has received co-processing approval from the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) with tests slated for this year.
Petrobras said that Reduc has initiated a successful test for producing SAF jet fuel through co-processing with up to 1.2% corn oil content. ANP authorised this development, paving the way for commercial production within months, expected to reach up to 50,000m³/month (10,000bpd).
The refinery also produces Diesel R5 with 5% renewable content and has ANP approval to test a new Diesel R7 blend with a 7% renewable mix. These initiatives form part of Petrobras’ strategy towards product decarbonisation and an equitable energy transition.
Petrobras aims to enhance energy efficiency by constructing a new thermal power plant at Reduc. This BRL860m ($158.6m) investment will replace outdated steam and power generation equipment, boosting reliability and aligning with international efficiency standards.
Additionally, BRL2.4bn ($440m) is allocated for maintenance shutdowns at Reduc between 2025 and 2029 to ensure facility integrity and safety. A major shutdown is planned for 2026 involving the delayed coking and hydrotreatment units.
In petrochemicals, Petrobras is assessing the potential production of acetic acid and monoethylene glycol (MEG) at Boaventura. Brazil currently relies entirely on imports for acetic acid and supplements MEG demand through imports.
Braskem, affiliated with Petrobras, intends to expand its polyethylene plant’s capacity by up to 230,000 tonnes annually at Boaventura’s Route 3 natural gas processing site. This expansion requires governance approval from Braskem and entails an investment of around BRL4bn ($740m).
