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Petrobras said it is capable of processing over 500 barrels/day of crude oil without the need to build new refineries. The company aims to increase the capacity of its existing refining plants in the domestic market.
The Director of Industrial Processes and Products at Petrobras, William França, commented on the company's expectations for the refining market. He stated that the oil company can expand its refining capacity between 400 and 500 barrels/day just with investments in the existing refineries. Thus, it is already mobilizing with new initiatives in states such as Pernambuco and Mato Grosso do Sul.
Investments in refineries can expand refining capacity by up to 500 barrels/day
Petrobras, the Brazilian state oil company, revealed last Friday (13/05), that it sees room to process another 500 barrels/day of crude oil without building new refineries.
The director of Industrial Processes and Products at the company, William França, said that the potential for increasing capacity is equivalent to two new refineries the size of the Duque de Caxias Refinery (Reduc), in Rio de Janeiro.
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França said that the company is talking to its economic area to make new investments possible, but did not give details about the specific projects being considered.
The company's current business plan, approved in 2022, already foresees investments of US$ 4,3 billion in the expansion between 2023 and 2027.
However, Petrobras' new management is reassessing the company's strategic planning, and it is possible that new projects may be incorporated into the market.
In addition to increasing its refining capacity, Petrobras is also seeking to increase the utilization factor of its existing refineries.
In the first quarter of 2023, the utilization factor of the company's refineries was 85%. However, França said the company has no further downtime scheduled for scheduled maintenance in the coming months and expects the utilization factor to rise above 90%.
The company's decision to focus on increasing the utilization of its existing refineries is a cost-effective way to increase its production capacity.
Building new refineries would be a much more expensive proposition and would take several years to complete.
Petrobras invests in refining capacity in the states of Pernambuco and Mato Grosso do Sul
Petrobras is making new investments in the states of Pernambuco (PE) and Mato Grosso do Sul (MS).
In April, the company closed the contract for the expansion and modernization of train 1 at Rnest, its refinery in Pernambuco.
The project will increase production capacity from 115 barrels/day to 130 barrels/day. Completion of the work is scheduled for 2024.
Petrobras is also starting to operate a new derivatives trading center in Rondonópolis, in Mato Grosso do Sul. The hub will be responsible for selling gasoline, diesel and other products to the domestic market.
These investments are part of Petrobras' strategy to increase its production and market share in Brazil. The company is also investing in new technologies and renewable energy sources.
The expectation is that investments in PE and MS will generate jobs and boost the local economy. The state of Pernambuco is already home to the Abreu e Lima Refinery, one of the largest in Brazil. The new investments are expected to further strengthen the state's position as a major player in the oil and gas industry.
Petrobras' investments are a sign of the company's confidence in the Brazilian refining market for the coming years.
