Petrobras lets EPC contract for new unit at Replan refinery

Petróleo Brasileiro SA (Petrobras) has let a contract to a consortium of Toyo Setal Empreendimentos Ltda. (TSE) and Toyo Engineering Corp. for construction of a new diesel hydrotreater at the operator’s 434,000-b/d Refinaria de Paulínia (Replan) refinery in Paulínia, São Paulo, Brazil.

As part of the May 9 contract, Consórcio Toyo Setal HDT Paulínia will provide engineering, procurement, and construction (EPC) services for the proposed $458-million diesel hydrotreating unit that, upon commissioning in 2025, will enable Replan to produce 100% low-sulfur Diesel S10 (10 ppm sulfur), as well as increase the refinery’s current production volumes by 63,000 b/d, Petrobras said on May 11.

The planned unit also will increase Replan’s production of jet fuel by 12,500 b/d to help meet more stringent specifications and increased future demand for economically and sustainably produced cleaner fuels, according to the operator.

The EPC contract award follows Petrobras’ first announcement of the project in June 2021, at which time the company said the proposed diesel hydrotreater would have an anticipated production capacity of 10,000 cu m/day (OGJ Online, June 28, 2021).

Replan’s diesel hydrotreating project comes as part of the planned $6.1 billion Petrobras intends to spend on its refining business under the company’s 2022-26 strategic plan, as well as its previously announced RefTOP program, which aims to prepare the operator’s remaining refining assets both for an open, more competitive market in the country and the transition to a low-carbon economy (OGJ Online, June 10, 2021).

Alongside expanding existing refining capacity, refining-related investments will focus on initiatives to increase efficiency and operational performance of Brazilian refineries not involved in operator’s divestment portfolio, which in addition to Replan, include the:

• 239,000-b/d Duque de Caxias (Reduc) refinery in the Baixada Fluminense area of Brazil’s Rio de Janeiro state
• 252,000-b/d Refinaria Henrique Lage (Revap) refinery in São José dos Campos, São Paulo
• 170,000-b/d Refinaria Presidente Bernardes (RPBC) refinery in Cubatão, São Paulo
• 57,000-b/d Refinaria de Capuava (Recap) in Mauá, São Paulo (OGJ Online, Mar. 9, 2021).