Alert! Construction Of A New Oil Refinery In The Northeast Region Is Approved; Estimated 3,150 Jobs At The Facility To Be Built In Pecém, Ceará

The Industrial Project of the Oil Refinery Belongs to Noxis Energy and Was Published in the Official Gazette of the Union

By means of a resolution published in the Official Gazette of the Union this Tuesday (20), the National Council of Export Processing Zones (CZPE) approved the industrial project of the oil refinery of Noxis Energy, which will be built in Sector 2 of ZPE Ceará, part of the Pecém Complex.

This allows the installation and production of marine fuels, such as Marine Diesel (MGO), Marine Fuel Oil (Bunker), Automotive Diesel, and Liquefied Petroleum Gas (LPG) at the refinery.

The project, which has already started the environmental licensing process, will have a refining capacity of 50,000 barrels per day and will generate 150 direct jobs and around 3,000 indirect ones. It is estimated that by 2025, when the plan is fully operational, 1.5 million tons of gasoline will be produced annually.

The steel mill and refinery have been long-standing goals for Ceará. The state has the Pecém Steel Company (CSP), investment in a desalination plant made by an Australian company and now, the Noxis Energy oil refinery will be installed in Sector 2 thanks to the incentive scheme of ZPE Ceará. The state as a whole will benefit from more investments, jobs, and tax revenue, says the president of ZPE Ceará, Eduardo Neves.

Legal protection for 20 years and access to administrative, exchange, and tax benefits granted by the Brazilian ZPE regime are just a few of the advantages that the Pecém refinery will have with the CZPE approval, provided that legal determinations are observed. ZPEs also provide simplified bureaucratic procedures for the companies based there, in accordance with national legislation.

Strategic Effort for the Installation of This Oil Refinery

After years of planning, the Noxis Energy oil refinery in the area of ZPE Ceará finally began construction in September 2020, fulfilling a long-standing goal of the State of Ceará and being supervised by Governor Camilo Santana. The project took another step when, in February 2022, the agreement between Noxis and the Pecém Complex (CIPP S/A) matured into a pre-contract.

Noxis Energy is an oil refining company based in Rio de Janeiro, Brazil, with refineries being established at key points along the Brazilian coast. “Being located in Ceará is crucial for the success of our business due to the state’s advantageous geographic situation in a market with high demand for derivatives within a 200-kilometer radius, in addition to its modern Port of Pecém and its capacity to service the Port of Itaqui, in Maranhão. Despite the scarcity, ships still make the journey to Brazil to refuel before heading back home.

Gabriel Debellian, CEO of Noxis Energy, stated at the time that the refinery would make the company the main supplier of clean bunker fuel, whose use would become mandatory for ships and result in a drop in sulfur content from 3.5% to 0.5%.