Petrobras Unveils $109 Billion Investment Plan for Brazilian Downstream Sector (2026-2030)

Petrobras Commits $109 Billion to Brazilian Energy Market

Petrobras, Brazil's state-controlled oil and gas company, has officially approved a comprehensive investment plan totaling $109 billion (equivalent to 581.2 billion reais) for the period between 2026 and 2030. This strategic outlay is primarily directed towards strengthening the Brazilian energy market, with a significant emphasis on downstream operations, including fuels, refining, and petrochemical upgrades. The investment, while substantial, represents a 1.8% reduction from the previous 2025-2029 plan, a recalibration attributed to lower international oil prices.

Of the total capital expenditure, $91 billion is allocated to projects already under implementation, while $18 billion is earmarked for opportunities currently under evaluation, pending further feasibility studies.

Boosting Refining Capacity and Fuel Production

A core component of the investment strategy is the expansion and modernization of Petrobras's refining system. The company aims to increase its installed processing capacity from 1.8 million barrels per day (bpd) to 2.1 million bpd by 2030, an increase of 320,000 bpd. This expansion will be achieved through upgrades to existing facilities rather than the construction of new refineries.

A flagship project within this plan is the expansion of the Abreu e Lima Refinery (RNEST) in Ipojuca, Pernambuco. The construction of Train 2 at RNEST is set to double the refinery's processing capacity to 260,000 bpd by 2029, up from its current 130,000 bpd. This particular project involves an investment of approximately 12 billion reais (around $2.25 billion to $3.4 billion, depending on exchange rates) for its completion and maintenance of Train 1.

The RNEST expansion is projected to significantly boost the output of various refined products, including an additional 88,000 bpd of S-10 diesel, alongside increased production of gasoline, liquid petroleum gas (LPG), and naphtha. Petrobras President Magda Chambriard stated that the expanded RNEST will meet up to 17% of Brazil's national diesel demand, thereby reducing import reliance and enhancing the country's energy security. The project is also expected to create approximately 15,000 direct and indirect jobs.

Strategic Focus on Petrochemicals and Low-Carbon Fuels

Beyond refining, Petrobras is channeling strategic investments into the petrochemical sector, aiming to boost Brazil's domestic petrochemical industry through upgrades to refining capacity. The company is also allocating resources for research and development in petrochemical projects, recognizing their potential for value generation and synergy with existing operations.

The investment plan also underscores a commitment to low-carbon fuels. Resources are directed towards the production of high-quality, lower-carbon fuels, including investments in biorefining. This involves the development of dedicated Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO) plants, as well as adaptations at refineries like Regap and Replan for SAF production through coprocessing.

Economic Impact and Strategic Vision

This substantial investment aligns with Petrobras's broader Strategic Plan 2050 (SP 2050), which envisions the company as a diversified and integrated energy leader. The plan seeks to balance its traditional focus on oil and gas with an expansion into low-carbon businesses, including petrochemicals, fertilizers, and biofuels. Petrobras aims to maintain its 31% share of Brazil's primary energy supply until 2050.

The company anticipates that these investments will not only bolster Brazil's energy infrastructure but also stimulate economic growth, with projections indicating the creation of 311,000 direct and indirect jobs and a contribution of R$1.4 trillion in taxes to municipal, state, and federal governments over the next five years.