Brazil’s Petrobras launches natural gas processing unit in Rio de Janeiro

SAO PAULO (ICIS)–Petrobras has begun start-up procedures for Brazil’s largest natural gas processing unit (UPGN) in Itaborai, near Rio de Janeiro, the state-owned energy major said on Wednesday.

The company received authorization from regulator the National Agency of Petroleum, Natural Gas and Biofuels (ANP) for industrial operations on 9 September.

The facility will process gas from the pre-salt layer of the Santos Basin, transported via the new Route 3 gas pipeline; the project is strategic for Petrobras, which has said it wants to increase natural gas supply to the Brazilian market profitably.

The move comes just days after the government passed new regulations for the natural gas market which are aiming to increase domestic supply; the move was praised by chemicals companies, although analysts concurred that the key players to make the regulation a success will be the oil and gas majors.

Currently in its final preparation phase, the UPGN is undergoing process and equipment calibration, and commercial operations are expected to commence in early October.

The project will enable the flow of up to 18 million cubic meters per day (cbm)/day) and processing of up to 21 million cbm/day of gas, reducing Brazil’s dependence on imports.

Petrobras has renamed the complex housing the UPGN to Boaventura Energy Complex, referencing the preserved ruins of Sao Boaventura Convent within the site.

Future plans for the complex include two gas-fired thermoelectric plants and additional refining units for fuels and lubricants.

Once completed, the facility will have production capacities of 12,000 barrels/day for Group II lubricating oils, 75,000 barrels/day for S-10 diesel, and 20,000 barrels/day for aviation kerosene, operating in synergy with the Duque de Caxias Refinery.

Duque de Caxias is also where Brazil’s polymers major Braskem operates some facilities, and the company has repeatedly said it would expand that site if more and cheaper natural gas was available.