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Petrobras entity description on Portfolio Planning PLUS

Petróleo Brasileiro S.A. (Petrobras) has signed contracts worth $892 million with São Paulo-based Consag Engenharia to complete construction of Train 2 at its Abreu e Lima Refinery (RNEST) in Pernambuco, marking a significant milestone in Brazil's quest for energy self-sufficiency.

Strategic Investment Framework

The RNEST expansion is part of Petrobras' ambitious 2025-2029 business plan, which allocates $111 billion in total investments, with $19.6 billion specifically dedicated to the Refining, Transportation, Marketing, Petrochemicals and Fertilizers (RTM) segment—a 17% increase from the previous plan. This strategic focus aims to increase Petrobras' total distillation capacity from 1.81 million barrels per day (bpd) to 2.1 million bpd of crude oil.


Abreu eLima refinery | Photo: Brazil de Fato, June 20, 2022.

RNEST Expansion Details

The three awarded contracts cover critical processing units for Train 2:

• Atmospheric Distillation Unit (UDA): 130,000 bpd capacity
• Delayed Coking Unit (UCR): 75,000 bpd processing capability
• Diesel Hydrotreating Unit (UHDT-D): 82,000 bpd capacity for 100% S-10 diesel production

Upon completion in 2029, RNEST's total capacity will double from 130,000 bpd to 260,000 bpd, making it Petrobras' second-largest refinery. The expansion will generate approximately 30,000 direct and indirect jobs during construction and operation.


Delayed coker at Abreu e Lima refinery | Credit: Petrobras

Technological Leadership

RNEST already demonstrates Petrobras' commitment to advanced refining technology. In December 2024, the refinery commissioned the Americas' first SNOX emissions abatement unit, supplied by Topsoe AS, which converts sulfur oxides and nitrogen oxides into marketable sulfuric acid while improving energy efficiency. This positions RNEST as a benchmark for environmental technology in refining operations.


SNOX technology description on Portfolio Planning PLUS

The refinery currently achieves the highest crude oil-to-diesel conversion rate in Brazil at 70%, and the expansion will enable 100% S-10 diesel production, meeting Brazil's stricter environmental standards.

Strategic Impact

Energy Security Enhancement: The expansion addresses Brazil's growing fuel demand, particularly in the north and northeast regions that traditionally rely on imports. Petrobras plans to increase S-10 diesel production capacity by 290,000 bpd across its refining system.

Economic Rationale: CEO Magda Chambriard emphasized that "RNEST is strategic for Brazil, as it is Petrobras' hub in the North and Northeast regions," highlighting the project's role in national energy security.

Financial Performance Context

Petrobras' strong financial position supports these investments, with the company reporting a 48.6% year-on-year increase in net profit to 35.2 billion reais in Q1 2025, and adjusted EBITDA of 61 billion reais.

Broader Refining Portfolio

Beyond RNEST, Petrobras is implementing refining capacity expansions across multiple facilities, including new units at REPLAN and GASLUB, alongside modernization projects at REDUC, REVAP, and REGAP. The company is also advancing its BioRefining program to produce low-carbon fuels, including R5 diesel and sustainable aviation fuel (SAF).


Petrobras Refineries | Market Intelligence by Portfolio Planning PLUS

Looking Forward: With RNEST's expansion and the comprehensive refining investment program, Petrobras is positioning itself to maintain its dominance in Brazil's energy sector while supporting the country's transition toward cleaner fuels and greater energy independence. The systematic modeling of these developments on platforms like ppPLUS will be crucial for tracking the progress and impact of these strategic investments.

#petrobras #refinery #refining #rnest #snox #capacityexpansion

Abu Dhabi, UAE | 28 April 2025 -- Borouge Plc has announced a series of strategic expansion projects that will increase its annual polyolefin production capacity to over 6.6 million tonnes by 2028. The company has awarded two major contracts to support this growth, with the initiatives expected to contribute between $165 million and $200 million to annual EBITDA

Linde Engineering has been selected to provide Front-End Engineering Design services for the upgrade of Borouge’s second ethane cracker (EU2), which will add 230,000 tonnes per year and boost the unit’s capacity by 15%. This expansion is scheduled for completion in the fourth quarter of 2028, with ethane feedstock supplied by ADNOC Gas and ADNOC Refining

In parallel, Target Engineering Construction Company has secured an engineering, procurement, and construction contract to expand Borouge’s fourth and fifth polyethylene units (PE4 and PE5). These upgrades will increase the nameplate capacity of each unit from 540,000 to 700,000 tonnes per year, utilizing advanced Borstar Polyethylene technology. The expanded units are expected to be operational in the first quarter of 2027

These developments follow Borouge’s track record of rapid growth since 2001, having increased its production capacity tenfold to reach 5 million tonnes per year. The new expansions, together with the Borouge 4 mega project and the proposed combination with Borealis and the acquisition of Nova Chemicals, position Borouge to become one of the world’s leading polyolefin producers, with a combined capacity of 13.6 million tonnes across 62 plants globally.

#borouge #borealis #ethyleneplant #borstar #linde #capacityexpansion #uae #unitedarabemirates #polyethylene

BPLC Bina Refinery

India's Bharat Petroleum Corp. (BPLC) plans to expand its refining capacity to 45 MMtpy by 2028 from the current 35.3 MMtpy, its head of refining, Sanjay Khanna, said on Dec 17, 2024 at an industry event, as reported by Hydrocarbon Processing.

As part of the plan, BPCL—the country's second-biggest fuel retailer—will increase the capacity of its 15.5-MMtpy Kochi refinery, situated in the southern state of Kerala, to 18 MMtpy.

It will also boost the capacity of its 12-MMtpy Mumbai refinery to 16 MM tpy, Khanna said.

The state-run company additionally expects to expand its 7.8-MMtpy Bina refinery in central India to 11.3 MMtpy by May 2028, he added.

The refiner, which is always on the scout for cheaper oil grades to maximize its profit margins, is also keen to test low-sulfur grades from South America including those from Argentina, Khanna said.

#crudeoil #lowsulfur #refining #refinery #bplc #bharat #bina #kochi #mumbai #india #capacityexpansion