Brazil's Petrobras Seeks to Expand S-10 Diesel Production

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Petrobras aims to increase its production of S-10 diesel, with its output expected to grow by as much as 307,000 bpd by 2030. The company also is expanding its sustainable aviation fuel and renewable diesel capacity.

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Prepping for Improvements

Petrobras approved the start of an engineering, procurement, and construction (EPC) bidding process for the construction of a new diesel-hydrotreating unit (HDT) at its 196,000-barrel-per-day (bpd) Presidente Getulio Vargas Refinery (Repar Refinery).

The project will help the refinery to produce S-10 diesel, an ultra-low sulfur content diesel fuel containing a maximum of 10 parts per million (ppm) of sulfur developed for light and heavy vehicles. S-10 diesel has a lower environmental impact than higher-sulfur diesel.

Industrial Info Resources offers more information on developments at the Repar Refinery in its Global Market Intelligence (GMI) Petroleum Refining Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

"The authorization to begin the bidding process constitutes another stage of the project, but does not represent a definitive decision on the implementation of the undertaking, which remains subject to the technical, economic and governance evaluations applicable to the company's investment projects," Petrobras said in a statement.

The construction of the new unit at Repar is part of Petrobras' plan to boost S-10 diesel production in the near term. In addition to the HDT in Repar, Industrial Info Resources is tracking the addition of an HDT at the 188,000-bpd Alberto Pasqualini Refinery (Refap), as well as HDT optimizations at at the 251,600-bpd Duque de Caxias Refinery (Reduc).

Readers can learn more about these developments from detailed reports on the projects at Refap and Reduc.

Through upgrades and additions, Petrobras projects a potential 307,000-bpd increase in S-10 diesel production capacity by 2030 and another 78,000 bpd for 2031. Four of the projects highlighted by the company are under evaluation, including Repar's addition, which is moving to the bidding stage.

The biggest S-10 diesel addition will come from construction of a 130,000-bpd second train at the Abreu e Lima Refinery (Rnest), which will add 82,000 bpd of S-10 diesel capacity. Readers can learn more from a plant profile and project report.

Sustainable Fuels

Petrobras also is upgrading its downstream assets to produce higher volumes of sustainable aviation fuel (SAF) and renewable diesel.

According to Industrial Info Resources data, Petrobras is hosting six renewable diesel and SAF projects across its refineries, amounting to investments of US$560 million. Readers can learn more from a detailed list of project reports.

At the same time, Brazil temporarily increased the mandatory ethanol content in regular gasoline from 30% to 32% on August 1 for 180 days. In Brazil, hydrous ethanol produced from sugarcane and corn is used as a stand-alone fuel in cars, while anhydrous ethanol is blended into gasoline.

Fuel Subsidies

In May, the Brazilian government introduced a gasoline subsidy of 0.44 reais (8.5 US cents) per liter paid to producers and importers of fuels following the increase of oil prices amid the ongoing conflict between the U.S. and Iran.

Reuters reported on August 25 that the government plans to extend the subsidy through September 9.

Key Takeaways

• Petrobras approved the start of the EPC bidding process for Repar's HDT addition.
• Industrial Info Resources also is tracking HDT additions at Refap and Reduc.
• Petrobras plans a potenttial 307,000-bpd increase in S-10 diesel production capacity by 2030.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).