Petrobras, Brazil’s state oil company, has signed contracts worth 4.9 billion reais (about $892 million) with Consag Engenharia to build key new units at its Abreu e Lima Refinery (RNEST) in Pernambuco.

This investment, part of Petrobras’ official 2025-2029 business plan, aims to double the refinery’s processing capacity by 2029. The project will add three major units: a delayed coking unit that can handle 75,000 barrels of oil per day.

It will also include a diesel hydro-treatment unit capable of 82,000 barrels per day and an atmospheric distillation unit for 130,000 barrels per day. These facilities are set to begin operating in 2029.

Once complete, RNEST will process 260,000 barrels of oil per day, up from its current 130,000. This will make it Petrobras’ second-largest refinery and help meet growing demand for diesel and other fuels in Brazil’s north and northeast.

These regions often rely on imports, so this expansion will help Brazil produce more fuel locally. Petrobras says this decision followed a thorough economic review and fits into its broader plan to increase domestic fuel production.

Petrobras Invests to Double Refinery Output, Strengthening Brazil’s Fuel Independence. (Photo Internet reproduction)

Petrobras Upgrades RNEST Refinery to Boost Capacity

The company also recently upgraded RNEST’s first processing train, raising its capacity and installing a modern emissions unit that cuts pollution and produces sulfuric acid for industry.

The refinery already leads the country in converting crude oil into diesel, with about 70 percent of its output as diesel fuel. With the new units, Petrobras plans to shift entirely to producing S-10 diesel, a cleaner fuel with less sulfur, by 2029.

This will help Brazil meet stricter environmental standards and reduce harmful emissions. The expansion is expected to create thousands of jobs during construction and operation, supporting the local economy.

By doubling its refining capacity, Petrobras aims to reduce Brazil’s dependence on imported fuels, improve energy security, and keep more of the fuel supply chain within the country.

This move reflects a practical business strategy: invest in local infrastructure, meet rising demand, and support regional growth with real economic benefits.