(Bloomberg) — Brazil’s state-run oil giant, Petróleo Brasileiro SA (Petrobras), will invest 20 billion reais ($3.6 billion) in a Rio de Janeiro complex, according to CEO Magda Chambriard. The announcement was made on Friday during the inauguration of a long-delayed natural gas processing facility.
Petrobras plans to allocate 13 billion reais over the coming years to a plant in Itaboraí, which will produce various derivatives, and an additional 7 billion reais to a refinery near the complex. Construction on these projects is set to begin in 2025, Chambriard said.
Chambriard made the remarks at an event marking the launch of Petrobras’ Rota 3 project, which will be capable of transporting up to 18 million cubic meters of natural gas per day and processing 21 million cubic meters daily. This will significantly increase the domestic gas supply and reduce Brazil’s dependence on imports. Commercial operations at the processing plant—the largest in Brazil—are scheduled to commence in October.
The Rota 3 gas line has faced years of delays, which forced Petrobras to pay premium prices for imported fuel, particularly from Bolivia. Additionally, the company had to compete with European buyers for seaborne cargoes when the global market was disrupted by Russia’s invasion of Ukraine.
This marks the second inauguration under Chambriard’s leadership since she assumed the role of CEO in May, tasked with accelerating investments. The industrial area, now renamed the Boaventura Energy Complex, was formerly known as Comperj, a controversial gas and refinery project that was plagued by corruption scandals, cost overruns, and financial write-offs.
Petrobras plans to add two gas-fired thermoelectric plants to the Boaventura Energy Complex, located about 90 minutes from Rio de Janeiro. The company also intends to build refining units to produce lubricants, diesel, and jet fuel on the site, with potential plans to add a petrochemicals unit to the complex.
The new operations are expected to support Petrobras’ strategy of reducing the reinjection of natural gas into wells, which will help boost crude oil production. The initiative aligns with President Luiz Inácio Lula da Silva’s efforts to expand the domestic energy supply and lower prices.
Speaking at the ceremony, President Lula emphasized that Petrobras’ mission goes beyond generating profits, underscoring its role in supporting Brazil’s energy needs.