Expanding Brazil’s Refining Capacity: A Decade of Growth and Innovation in the Energy Sector

Brazil to Boost Oil Refining Capacity by 10% by 2035, But Import reliance will Continue

São Paulo, Brazil – December 2, 2025 – Brazil is poised for a meaningful increase in oil refining capacity over the next decade, according to a new projection by energy research company EPE.The country’s refining capabilities are expected to grow by 10%, rising from 2.22 million barrels per day (Mb/d) to 2.56 Mb/d between 2025 and 2035.

This expansion will be driven primarily by the completion of key projects, including the second train of the Abreu e Lima refinery (RNEST) and the Bonaventure energy complex, alongside expansions to diesel distillation and hydrotreatment units across the nation.

Key projects Driving Growth:

Several projects are already underway,wiht completion dates spanning the next several years:

* 2025: A series of projects reached completion earlier this year,including expansions at the RNEST refinery in Pernambuco (130,000 b/d),a new diesel hydrotreatment unit at the Replan refinery in São paulo (10,000 m³/d),and a catalytic cracking unit conversion at the Riograndense refinery in rio Grande do Sul,aiming for 100% renewable load and green chemical production. The new Brazil Refineries plant in Simons daughter Bay, with a 736 b/d capacity, also came online.
* 2026: The Dax Oil refinery in Bahia is slated for an 8,000 b/d capacity expansion. Modernization of the Revap refinery’s diesel hydrotreatment unit in São Paulo will also boost S10 diesel production.
* 2028-2029: The completion of RNEST train 2 will add another 130,000 b/d of capacity. Integration between Reduc and Boaventura in Rio de Janeiro, including hydrocracking, diesel HDT, UGH, and HIDW units, will further enhance refining capabilities.
* 2030-2032: Further expansions are planned for Replan’s delayed coke units, alongside new naphtha and diesel hydrotreatment units at Replan, Refap (Rio Grande do sul), and Repar (Paraná) refineries.

Continued Import Dependency

Despite these substantial investments, Brazil is expected to remain a net importer of oil derivatives, particularly diesel and gasoline, throughout the forecast period. This highlights the ongoing need for a balanced energy strategy that addresses both domestic production and international supply chains.

Brazil, the largest country in South America and fifth-largest globally, currently has a population exceeding 213 million. The nation is a federation comprised of 26 states and the Federal District, home to the capital, brasília.This energy sector development is a crucial component of Brazil’s continued economic growth and its role on the global stage.

What impact will the global transition to renewable energy sources have on Brazil’s long-term refining capacity investments?

The Rise of Brazilian Refining: 2015-2025

Brazil’s energy sector has undergone notable transformation in the last decade, notably concerning it’s refining capacity. driven by increasing domestic demand, export opportunities, and a strategic push for energy independence, the nation has invested heavily in modernizing existing refineries and constructing new ones. This expansion isn’t just about volume; it’s about embracing innovation in oil refining technology, improving fuel quality, and navigating the complexities of a changing global energy landscape. As of 2025, Brazil boasts a developing market economy, with manufacturing, financial services, and trade as key pillars – all heavily reliant on a robust and efficient energy infrastructure.

Key Drivers of Expansion

Several factors have fueled this growth in Brazilian oil and gas refining:

* Growing Domestic Demand: A rising middle class and increased industrial activity have led to a consistent surge in demand for gasoline, diesel, and other refined products.

* Pre-Salt Discoveries: The massive pre-salt oil discoveries off the Brazilian coast provided a secure and abundant source of crude oil, incentivizing investment in refining infrastructure.

* Government Initiatives: Policies aimed at strengthening the energy sector, attracting foreign investment, and promoting technological advancements have played a crucial role.The government’s focus on energy security is paramount.

* Export Potential: Brazil has become a significant exporter of refined products to other South american countries and beyond, further driving the need for increased capacity.

* Biofuel Integration: Brazil’s established ethanol industry and growing biodiesel production have influenced refining processes, creating opportunities for integrated biofuel refining.

Major Refinery Projects & Upgrades (2015-2025)

the past decade has witnessed a flurry of activity in refinery development. Here’s a look at some key projects:

* COMPREX (Paulínia Refinery): This project, a cornerstone of Brazil’s refining expansion, significantly increased refining capacity in the São Paulo state. It focused on processing heavier crude oils and producing higher-value products.

* RECAP (Revitalization and Capacity Expansion Project – Abreu e Lima Refinery): Aimed at modernizing and expanding the Abreu e Lima refinery in Pernambuco, RECAP boosted capacity and improved the refinery’s ability to process a wider range of crude oils.

* DUQUE DE CAXIAS Refinery Modernization: Ongoing upgrades at the Duque de Caxias refinery in Rio de Janeiro have focused on improving efficiency, reducing emissions, and increasing the production of cleaner fuels.

* New Refinery Projects: While facing some delays,several new refinery projects were proposed and are in various stages of development,aiming to further increase Brazil’s overall refining capacity. These include projects focused on deepwater oil refining.

Technological Advancements in Brazilian Refineries

Brazilian refineries have been actively adopting cutting-edge technologies to enhance efficiency, improve product quality, and reduce environmental impact. These include:

* Residue Upgrading: Technologies like fluid catalytic cracking (FCC) and hydrocracking are being used to convert heavy residues into valuable products like gasoline and diesel.

* Desulfurization: Investments in desulfurization units are crucial for producing cleaner fuels that meet stringent environmental standards. This is vital for reducing sulfur emissions.

* Digitalization & Automation: Implementing advanced process control systems, data analytics, and artificial intelligence (AI) to optimize refinery operations and improve decision-making. Refinery digitalization is a key trend.

* Biofuel Integration Technologies: Developing technologies to co-process crude oil with biofuels,creating lasting and environmentally friendly refining processes.

* Carbon Capture, Utilization, and Storage (CCUS): Exploring CCUS technologies to reduce carbon emissions from refining operations, aligning with global sustainability goals.

Impact on Fuel Quality & Environmental Sustainability

The expansion and modernization of Brazil’s refining capacity have had a positive impact on fuel quality and environmental sustainability.

* Cleaner Fuels: Increased desulfurization capacity has led to the production of gasoline and diesel with lower sulfur content, reducing air pollution.

* Ethanol Blending: Brazil’s long-standing ethanol blending program continues to reduce reliance on fossil fuels and lower greenhouse gas emissions.

* Biodiesel Production: Growing biodiesel production contributes to a more sustainable fuel mix and supports the agricultural sector.

* Reduced Emissions: Modernized refineries are equipped with advanced emission control technologies, minimizing their environmental footprint.

* Compliance with international Standards: The improvements in refining technology have enabled brazil to meet increasingly stringent international fuel quality standards.

Challenges and Future Outlook

Despite the significant progress, Brazil’s refining sector faces ongoing challenges:

* Investment Costs: Refinery projects are capital-intensive, requiring considerable investment.

* Regulatory Framework: Navigating the complex regulatory landscape can be challenging for investors.

* Infrastructure Bottlenecks: Limited infrastructure, such as pipelines and storage facilities, can hinder the efficient transportation of crude oil and refined products.

* Global Market Volatility: Fluctuations in global oil prices and demand can impact the profitability of refineries.

* Transition to Renewable Energy: The global shift towards renewable energy sources poses a long-term challenge to the refining industry.

Looking ahead, Brazil’s refining sector is expected to continue