Petrobras Halts Production at Paulínia Refinery (Replan) Due to Lack of Offtake in One Unit

According to Sindipetro, Petrobras’ refinery has stopped producing approximately 11 thousand cubic meters of LPG and 75 million liters of gasoline

According to a publication by Sindipetro (Union of Oil Workers in the state of São Paulo), since last Monday (July 5), Petrobras’ Paulínia Refinery (Replan) has halted production of a Catalytic Cracking unit, U-220, due to lack of outlet for liquefied petroleum gas (LPG). The union also emphasizes that in five days, Replan has stopped producing approximately 11,000 cubic meters of LPG and 75 million liters of gasoline. See also: To Adapt and Modernize the Paulínia Refinery, Petrobras Opens Bidding Process for Equipment

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Reason for the Suspension of Production in the Petrobras Refinery Unit

According to an operator at Replan, who preferred not to be identified to Sindipetro, the suspension of production in the Petrobras refinery unit was a decision made by the government to eliminate the Import Tax on polypropylene resin at the beginning of April. Developed by the Executive Management Committee (Gecex), linked to the Ministry of Economy, the measure established a quota of 77,000 tons of the product, which is the raw material used in the production of protective masks against Sars-Cov-2, the virus that causes Covid-19.

However, this measure directly affected Braskem, a petrochemical company controlled by Odebrecht and also by Petrobras, which produces polypropylene. As a chain reaction, Petrobras was also affected because it supplies propene, a raw material used in the production of polypropylene. For this reason, propene was incorporated into LPG, which did not find a logistics outlet.

Risks with the Suspension of Production at the Refinery

Another operator, interviewed by Sindipetro, drew attention to the increased likelihood of accidents. According to the operator, the units at Petrobras’ refinery are designed to operate continuously, and thus, stoppages multiply the risks of leaks, fires, and structural failures. The vast majority of major leak events and tragedies occur at times when the operational plants are under intervention or out of the normal operating regime, says the operator.

The oil worker reports the unprecedented nature of the situation, as according to him, a stoppage like this has never occurred before, according to older employees. The Petrobras refinery worker further emphasized that Replan has a vast storage sphere park.

See Also: The Petrobras Refineries That Will Not Be Sold Will Receive Investments of US$ 300 Million by 2025

Petrobras announced that it intends to invest approximately US$ 300 million in the refineries that are not on the disinvestment plans. The announcement by the state-owned company was made on May 24, and the investments are primarily aimed at increasing the efficiency and performance of the assets. The Petrobras refineries that will receive the investments are Presidente Bernardes, Duque de Caxias, Capuava, Paulínia, and Henrique Lage, all located in the states of São Paulo and Rio de Janeiro.

Petrobras announced a program called RefTOP – World-Class Refining, which aims to be among the best oil refineries in the world. This program is part of Petrobras’ Strategic Plan 2021-2025, with an investment of US$ 3.7 billion, of which US$ 300 million will be allocated to the refineries.