LARTC 2025 Conference Newspaper

LARTC 2025

• More than 10% energy efficiency improvement driven by no/low Capex solu- tions, such as MPO, ERTO, pinch analysis, and heat exchanger monitoring. • More than $30M/yr in potential profits via PIMS LP upgrades. • $10M/yr in margin improvements from the use of alternative lubricant crudes. • Reliability gains via RCA and RCM reduced downtime linked to high-impact assets. • Turnaround optimisation increased mechanical availability, and gatekeeper implementation reduced routine mainte- nance costs. • Digital twins with calibrated simulations

Conclusion Mataripe Refinery’s transformation is not just a corporate win – it is a compelling regional case study proving that ageing giants can learn to run lean and green when data, discipline, and engineering converge. These refineries are being reshaped into leaner, cleaner, and more capable centres of energy innovation. Mataripe’s numbers speak for themselves: • More than $100 million in validated annu- alised benefits across process, energy, reli- ability, and supply chain performance. • 6.5 vol% increase in middle distillate yields through crude separation, streamlined cata- lyst use, and stream routing optimisation.

and dashboards deployed across key refin- ery units. • Advanced planning and backcasting tools improved crude selection and opera- tional alignment with the LP. For refiners across Latin America, the message is clear: performance and decar- bonisation are not competing, they are complementary forces. When paired with the right strategy and partners, legacy refineries can continue to breathe new life into operations and deliver enduring value – now and into the future – while Bringing Decarbonisation to Life.

tion) resulted in shorter turnaround and reduced costs. A dedicated gatekeeper role and a tightened maintenance work process ensured the scope and priorities were well- defined. These changes avoided more than $3 million in unnecessary work and an esti- mated $5 million in labour cost reduction. Root Cause Analysis (RCA) and Reliability- Centered Maintenance (RCM) techniques targeted underperforming assets to help reduce some of the estimated $30-45 mil- lion in production losses during 2023. As a result, mechanical availability, process safety, and sustainability all improved. Notably, these gains were achieved in addi- tion to the reported numbers.

Contact: Sanjay.Bhargava@kbc.global

Brazil targets increased refined product capacity and diversity

Rene G Gonzalez, Editor, PTQ

The Latin American refining industry faces challenges that impact both local and international investors, including regula- tory instability, economic constraints, and technology gaps. In addition, complex per- mitting processes and unclear regula- tions increase project risk and timelines. Fluctuating exchange rates affect project financing and equipment imports. Against this backdrop, investments and projects to increase refinery capacity and complexity are going forward in Brazil. The International Energy Agency (IEA) expects continued growth in crude oil production in Mexico and Brazil, some of which will supply crude oil to new refineries in China or India, while also providing feed- stock for new units and expanded facilities in Latin American countries. For those refiners undergoing upgrades, these projects are centred around the lat- est in hydroprocessing capacity, providing the leverage to convert a wider variety of feedstocks. Fortunately, the recently discovered crudes from Brazil’s offshore pre-salt for- mations, particularly in the Santos and Campos basins that are characterised as light-to-medium crudes (28° to 33° API), with very low sulphur content (<0.5%) and total acid number (TAN) (<1 mg KOH/g), tend to yield high proportions of diesel and naphtha. Petrobras expansion plans Following these developments is Petroleo Brasileiro S.A., or Petrobras S.A., head- quartered in Rio de Janeiro, which has recently signed contracts worth 4.9 bil- lion reais (about $892 million) with Consag Engenharia to build new units at its Abreu e Lima Refinery (RNEST) in Pernambuco. This investment, part of Petrobras’s offi- cial 2025-2029 business plan, aims to double the refinery’s processing capacity by 2029. The project will add three major units, including a delayed coking unit that can process 75,000 barrels of oil per day (bpd). It will also include an 82,000 bpd

R$2.4 billion on maintenance shutdowns between 2025 and 2029 to ensure oper- ational safety and efficiency. Braskem investment Braskem, a Petrobras affiliate, is expected to invest around R$4 billion in expand- ing its polyethylene plant. The project, which is subject to necessary approvals by Braskem’s governance bodies, hinges on increased gas flow from Route 3 and aims to add 230,000 tons per year of produc- tion capacity. The partnership between Petrobras and Braskem seeks to shift from naphtha to gas-based feedstocks such as ethane, to gain a competitive edge. Discussions are also underway to supply Braskem’s Bahia operations with domes- tic gas, further reducing the company’s import reliance. Petrobras’s current focus is on boosting domestic gas availability. Reactivating shut-in gas wells and pursuing integration with Argentina and Bolivia are part of a broader strategy to lower prices and meet rising demand from Brazil’s expanding digital and industrial sectors. The company foresees a Capex of $17 billion in the refining, transportation, and commercialisation area between 2025 and 2029. Petrobras aims to boost domestic fuel supply, support energy transition goals, and stimulate industrial synergy across the value chain

The Boaventura Energy Complex is set to include a biojet fuel plant that will primarily pro- duce SAF and HVO ( Credit: Petrobras )

diesel hydrotreating unit and a 130,000 bpd atmospheric distillation unit, both of which are set to begin operating in 2029. Once complete, RNEST will pro- cess 260,000 bpd, up from its current 130,000 bpd. This will make it Petrobras’s 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. The refinery already leads the country in converting crude oil into die- sel, with about 70% 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 sulphur, by 2029. Through integrated refining, petrochem- ical and renewable fuel initiatives total- ling $6 billion, the company aims to boost domestic fuel supply, support energy tran- sition goals, and stimulate industrial syn- ergy across the value chain. Boaventura Energy Complex These initiatives will connect the Boaventura Energy Complex in Itaboraí with the Duque de Caxias Refinery (Reduc).

Together, these projects represent a R$26 billion investment, which is already included under Petrobras’s 2025-2029 Business Plan, wherein the service pack- ages are currently in the bidding phase. Once operational, this infrastructure will enhance S-10 diesel output by 76,000 bpd, comprising 56,000 bpd from qual- ity improvements and 20,000 bpd from additional capacity. The project will also increase jet fuel production by 20,000 bpd and expand Group II lubricants output by 12,000 bpd. According to recent press reports, Boaventura will also host a biojet fuel facil- ity producing 19,000 bpd of sustainable fuels, hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), along- side two 400 MW gas-fired thermoelec- tric plants designed to integrate with the nearby Itaboraí gas processing unit, partic- ipating in future capacity reserve auctions. Petrobras also plans to modernise its on- site power infrastructure with a new ther- mal plant. This plant will replace outdated steam and power generation equipment with investments of up to R$860 million. The company also plans to spend up to

Contact: editor@petroleumtechnology.com

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