Brownfield Expansions, Cleaner Fuels Lead Refining Projects in South America

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

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Summary

South America's top five refining projects total US$4.6 billion in projected investments. Brazil leads with three projects, followed by Colombia and Trinidad and Tobago, with one project each.

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Project Trends

Industrial Info Resources data show brownfield expansions and cleaner fuel production lead South America's five largest refining projects by investment. Together, the five projects total nearly US$4.6 billion.

Petrobras leads with the region's two most expensive refining projects. First is the Boaventura Energy Complex upgrade, a cluster of 16 projects worth US$2.26 billion. The upgrades aim to expand lubricants production and the capacity to produce cleaner fuels such as S-10 diesel and jet fuel. The project seeks to integrate Boaventura with the Duque de Caxias refinery (REDUC). Construction work on the asset has already begun, with completion set for the fourth quarter of 2029.

The second-largest refining project in South America is Petrobras' Abreu e Lima (RNEST) Train 2 expansion in Pernambuco, Brazil, representing a US$900 million investment. The project aims to double RNEST's refining capacity to 260,000 barrels per day (bpd) through the construction of the 130,000 bpd Train 2. The new unit will increase S-10 diesel production capacity by 82,000 bpd. S-10 diesel is an ultra low-sulfur fuel developed for light and heavy vehicles. RNEST has the highest crude-to-diesel conversion rate in Brazil and is operational since 2014.

Noxis Energy's Pecem oil refinery in Brazil, a 100,000-bpd grassroot project, ranks third among the region's largest downstream projects, with projected investments of US$600 million. The refinery is designed to produce IMO 2020-compliant low-sulfur bunker fuel for the shipping market and leverage Pecem's deepwater port. The refinery is currently at the permitting stage; however, Industrial Info Resources places a low probability of completion for the project as planned.

Colombia's Barrancabermeja refinery upgrades represent the region's fourth-largest refining investment, valued at US$440 million. The project modernizes the refinery to reduce sulphur content in gasoline and meet international fuel quality standards. The project is in detailed engineering and is expected to begin construction late next year and could be completed around mid-2030.

The restart of Trinidad and Tobago's Pointe-a-Pierre refinery is the region's fifth-largest refining project, at US$400 million. The asset was shut down in 2018 by its former operator, Petrotrin, and it was the islands' only refinery. After its closure, the government has been studying the possibility of reopening the asset and sought foreign investments to fund the project.

Key Takeaways

• South America's top five refining projects total US$4.6 billion in investments.
• Three of the largest projects focus on cleaner fuel expansions.
• Petrobras is developing two large projects worth US$3.16 billion.

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About Industrial Info Resources
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 validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).