Pasadena Refinery, Formerly Owned by Petrobras, Becomes Key Asset for American Chevron’s Expansion

Journalist Luís Nassif criticized the “disinformation campaign” involving Petrobras and claims that the refinery purchased in the United States (Pasadena) by the state-owned company is now a key piece in Chevron’s expansion strategy.

Chelon, the second largest energy company in the United States, has accumulated substantial stakes in the Permian and is among the largest producers in the region. After Petrobras purchased the refinery, the journalist stated that the oil company made a smart move entering the American market.

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Amid The Crisis, The Petrobras Refinery In Pasadena Is An Excellent Strategy

From a strategic standpoint, it can be asserted that the purchase of Petrobras’s refinery in Pasadena remains an excellent business decision, as it allows Petrobras to enter the American market with added value, even after the incidents in Venezuela. The former Petrobras refinery in Pasadena has the capacity to process approximately 110,000 barrels of light crude oil per day, as well as pipeline connections to major pipelines and production sites.

The complex of 466 acres also has waterway access to receive and ship crude oil and refined products for export. The tank farm has a storage capacity of 5.1 million barrels of crude oil and refined products, along with 143 acres of additional land.

“This expansion of our Gulf Coast refining system allows Chevron to process more domestic light crude oil, supply part of our retail market in Texas and Louisiana with products produced by Chevron, and achieve synergies through coordination with our refinery in Pascagoula,” said Pierre Breber, Executive Vice President of Chevron Downstream & Chemicals in a statement.

Chevron Aimed to Boost Its Production

According to a study with Petrobras, Chevron aimed to boost production by expanding its Gulf Coast refining assets to process crude oil closer to its shale oil extraction operations.

As part of this plan, the work stated, “Chevron will acquire Pasadena Refining System Inc., the refining arm of the Brazilian state-owned company Petróleo Brasileiro SA – Petrobras, based in Texas, in a deal that includes the Pasadena refinery along the Houston Ship Channel in Texas.”

“A major selling point for [the Pasadena refinery] is its location adjacent to the Houston Ship Channel, which hosts four refineries and has excellent access to domestic crude oil supply and distribution of refined products,” said Sandy Fielden, project consultant.