Brazil's Lula, Petrobras Unveil Plan to Bolster Sao Paulo Energy Infrastructure

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

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Summary

Brazil's Petrobras plans to invest 37 billion reais (US$7.3 billion) to bolster Sao Paulo's energy infrastructure. Petrobras is targeted a substantial scale-up of ultra-low sulfur diesel (S-10) and sustainable aviation fuel (SAF) output.

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Strategic Investments

While Brazilian President Luiz Inácio Lula da Silva visited the Paulina refinery (REPLAN) in Sao Paulo, oil and gas major Petrobras announced a strategic investment plan of 37 billion reais (US$7.3 billion) for Sao Paulo state through 2030, targeting advancements in refining, biorefining, decarbonization, upstream exploration and production, and sustainable energy solutions. The projected investments are expected to generate 38,000 direct and indirect jobs during the period. According to Industrial Info Resources data, there are 65 active capital petroleum refinery projects in Brazil with a total investment value of US$6 billion.

Central to this plan is the company's pledge to allocate 6 billion reais (US$1.19 billion) by 2030 toward optimizing operations and expanding capacity at the 434,000-barrel-per-day (bpd) REPLAN refinery, Petrobras' flagship processing facility. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Petroleum Refining Plant Database can view a detailed profile of the REPLAN refinery.

The REPLAN capacity expansion wwould increase throughput by 5% to 459,000 bpd, with commissioning targeted for 2027. In parallel, Petrobras plans to install a new hydrotreating unit to enable the co-processing of waste and animal and vegetable oils for sustainable aviation fuel (SAF) production. The unit installation is scheduled for completion next year.

There are 24 active capital projects associated with REPLAN,according to Industrial Info Resources Data.

At the 168,000-bpd Presidente Bernardes refinery (RPBC), Petrobras plans to add a renewable diesel and sustainable aviation fuel (SAF) unit by 2030. Industrial Info Resources is tracking 15 RPBC projects worth US$342 million.

"The refineries in São Paulo are responsible for 50% of Petrobras's production of refined products, and four cities in São Paulo are among the 10 largest recipients of Petrobras taxes, precisely those that house our refineries. All of this generates direct and indirect employment and income," said Petrobras President Magda Chambriard.

Additionally, the announcement included new midstream and upstream energy investments across Sao Paulo state, with project timelines extending to 2030. These initiatives consist of pipeline infrastructure, expanded fuel storage at the Santos Terminal, and continued exploration activities in the Santos Basin.

Sao Paulo, with more than 46 million residents and 11.9 million at its capital, is Brazil's most populous and economically significant state, accounting for roughly 30% of the national GDP. The region is a key demand center for energy, driven by robust industrial and manufacturing hubs, notably in the automotive, refining and aviation sectors.

Petrobras Refining

Petrobras currently operates 1.81 million bpd of downstream processing capacity. By 2030, the company targets an increase to 2.13 million bpd, driven by Abreu e Lima refinery (RNEST)-related projects contributing 172,000 bpd and refinery revamps adding another 148,000 bpd.

The oil producer has increased its efforts to increase output of sustainable and cleaner fuels. The company has launched a biorefining plan aimed at producing higher volumes of renewable diesel and SAF. From 2025 through 2029, Petrobras is expected to add 117,000 bpd of co-processing and dedicated units across its refineries.

At the same time, diesel S-10 production, an ultra-low-sulfur diesel grade, is projected to increase by 307,000 bpd by 2030, primarily due to capacity expansions and unit upgrades scheduled for completion. RNEST and the Boaventura complex remain the principal assets supporting this growth trajectory.

Between 2026 and 2030, Petrobras plans to invest about US$16 billion in its refining, transportation, and marketing segment.

Key Takeaways

• Petrobras forecasts 37 billion reais in energy sector investments across Sao Paulo by 2030.
• Priority projects include REPLAN and RPBC refinery upgrades and midstream infrastructure investments.
• Petrobras targets US$16 billion in downstream investments by 2030, with a focus on refining operations.

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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).