The state-owned oil company emphasized that authorization to launch the tender constitutes a procedural step forward but does not represent a definitive commitment to execute the project. The initiative remains subject to technical and economic evaluations as well as internal governance approval processes before Petrobras commits to construction. The hydrotreating process uses hydrogen to remove sulfur and other impurities from refining streams, enabling production of fuels that meet stricter quality and emissions standards.
If the Repar project receives final approval, it would be developed alongside similar hydrotreating units planned for the Alberto Pasqualini refinery in Rio Grande do Sul and the Paulínia refinery in São Paulo state. The three projects combined could expand Petrobras’ S-10 diesel production capacity by approximately 70,000 barrels per day, according to company disclosures. The expansion aims to strengthen supply of higher-quality fuels and address domestic market demand, aligning with Petrobras’ strategy to enhance refining operations.
Petrobras has not disclosed an estimated investment amount or timeline for potential construction and commissioning of the new unit. During 2025, the company’s refining complex achieved a 91 percent utilization factor. Diesel, gasoline and jet fuel accounted for 68 percent of total refined product output during that period. The advancement of the Repar tender is incorporated into Petrobras’ strategy for evaluating new refining infrastructure investments, though definitive execution depends on pending evaluations and corresponding internal approval stages.
The Brazilian refining sector has been focusing on upgrading fuel quality standards to reduce emissions. Petrobras’ Abreu e Lima refinery in Pernambuco recently recorded its highest diesel production in nearly a decade, reaching 385 million liters in April following a capacity expansion project completed in 2025. The company is investing approximately 12 billion reais to complete the second train at that facility, which will add 130,000 barrels per day of processing capacity by 2029.
This article was curated and published as part of our South American energy market coverage.
