Petrobras plans capacity increase at RNEST refinery

Petróleo Brasileiro SA (Petrobras) has let a contract for the proposed modernization of existing units at Train 1 of the operator’s original nameplate-capacity 130,000-b/d Refinaria Abreu e Lima (RNEST) refinery in Ipojuca, Pernambuco, in northeast Brazil.

Signed on Apr. 20, the contract covers works to improve operations of RNEST Train 1’s atmospheric distillation unit, delayed coker, and other unidentified auxiliary units that, together, will return Train 1’s total crude oil processing capacity to 130,000 b/d from a current 115,000 b/d, Petrobras said.

The operator, however, revealed neither the value nor the recipient of the newly awarded contract.

Scheduled for completion during fourth-quarter 2024 and included in the company’s 2023-27 strategic plan, the proposed modernization also will enable Petrobras to increase its supply of 100% low-sulfur Diesel S10 for the Brazilian market beginning in 2025.

In addition to reducing emissions of particulate matter, use of Diesel S10—which has a higher cetane number than Diesel S500 (500 ppm sulfur)—promotes improved fuel performance of vehicle engines in line with Brazil’s stricter air pollution control program for on-road heavy-duty and utility vehicles (OGJ Online, June 15, 2022).

The operator’s strategic plan also includes the proposed completion and expansion of RNEST’s previously stalled Train 2, which has the potential to double the refinery’s capacity to 260,000 b/d with startup of the second 130,000-b/d processing train.

Planned modernization of RNEST Train 1 follows the operator’s August 2022 restart of the nonbinding phase in its program to sell three of its Brazilian refineries and associated logistics assets, the sales of which were previously delayed to accommodate revisions to divestment plans for each of the sites that, alongside RNEST, include the 208,000-b/d Refinaria Presidente Getulio Vargas (REPAR) refinery; and 208,000-b/d Refinaria Alberto Pasqualini (REFAP) refinery (OGJ Online, Aug. 22, 2022).

Petrobras previously said upon initially delaying the sales process in August 2021 that it would evaluate next steps regarding RNEST’s future after completing internal procedures to end the refinery’s then-current sale process (OGJ Online, Aug. 26, 2021).

With a rated crude processing capacity of 88,000 b/d as of yearend 2022, RNEST’s average throughputs—including crude and NGL feedstock—have decreased to 61,000 b/d in 2022 from 93,000 b/d, according to Petrobras’ latest annual report to investors.