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:
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.
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