Petrobras to Invest $4.8B in Reduc–Boaventura Integration

Petrobras has announced plans to invest approximately BRL 33 billion ($6.09 billion) in a series of refining and petrochemical integration projects across Rio de Janeiro, Brazil. The majority—BRL 29 billion ($5.35 billion)—will come from Petrobras’ capital expenditure (Capex), while BRL 4 billion ($740 million) is allocated to a synergistic development tied to the company’s downstream assets.

Integration of Reduc and Boaventura Energy Complex

A key focus is the integration of the Reduc refinery in Duque de Caxias with the Boaventura Energy Complex in Itaboraí. These integration projects, budgeted at BRL 26 billion ($4.8 billion) under Petrobras’ 2025–2029 Business Plan, are currently in the bidding phase for service contracts.

The integrated infrastructure aims to:

• Increase S-10 diesel production by 76,000 barrels per day (bpd) — 56,000 bpd through quality upgrades and 20,000 bpd through expanded capacity.

• Boost jet fuel production by 20,000 bpd.

• Add 12,000 bpd in Group II lubricating oil production capacity.

Focus on Renewable Fuels and Circular Economy

Plans at Boaventura include a new biojet fuel plant to produce 19,000 bpd of renewable fuels such as Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF).

Additionally, two gas-fired power plants will be integrated into the complex and are expected to participate in Brazil’s capacity reserve auctions. These will leverage synergies with the nearby Itaboraí natural gas processing unit, with engineering already approved.

At Reduc, a lubricant oil re-refining project is under evaluation. This initiative could transform existing infrastructure to recycle used oils, aligning with Petrobras’ circular economy goals. The project has secured co-processing approval from Brazil’s ANP (National Agency for Petroleum, Natural Gas and Biofuels), with pilot tests scheduled for this year.

SAF and Renewable Diesel Developments

Petrobras has successfully conducted SAF co-processing tests at Reduc using up to 1.2% corn oil, approved by the ANP. Commercial SAF production is expected within months, potentially reaching 50,000 cubic meters per month (approx. 10,000 bpd).

The refinery also produces Diesel R5 (with 5% renewable content) and has received ANP approval to test a Diesel R7 variant with 7% renewable content—initiatives that support Petrobras’ decarbonization and energy transition strategy.

Efficiency Upgrades and Scheduled Maintenance

Petrobras will also invest BRL 860 million ($158.6 million) in building a new thermal power plant at Reduc, replacing outdated steam and power systems to enhance reliability and align with global energy efficiency standards.

An additional BRL 2.4 billion ($440 million) has been earmarked for scheduled maintenance shutdowns at Reduc between 2025 and 2029, including a major shutdown in 2026 for its delayed coking and hydrotreatment units.

Petrochemical Growth and Import Substitution

Petrobras is evaluating production of acetic acid and monoethylene glycol (MEG) at Boaventura. These petrochemicals are currently imported to meet Brazil’s domestic demand. The initiative aims to strengthen national self-sufficiency in high-demand products.

Meanwhile, Braskem, a Petrobras-affiliated company, is planning a capacity expansion of its polyethylene plant by up to 230,000 tonnes annually at Boaventura’s Route 3 gas processing hub. This project, subject to governance approval, is expected to require an investment of around BRL 4 billion ($740 million).