Brazil's Petrobras To Build a Petrochemical Complex

Brazil's state-owned oil and gas company Petrobras plans to set up a petrochemical complex in the southeastern part of the country, where its main operations are located.

Supply director Paulo Roberto Costa said Petrobras is holding talks with local petrochemical companies Suzano and Unipar, which operate plants in the region, in a bid to seek cooperation.

On Monday, Petrobras, petrochemical company Braskem and oil and gas distributor Ultra, announced a deal to jointly buy the Ipiranga Group, which was Brazil's second largest fuel distributor and ran a petrochemical complex in the southern region.

The three partners are studying ways to expand the production capacity of Ipiranga's refining plant, which currently processes 17,000 barrels of oil per day, according to Costa.

He said that naphtha and bio-diesel are considered to be introduced in the production line of the plant.

Costa also revealed that Petrobras is now negotiating the purchase of a refinery in Okinawa, Japan, whose production capacity is estimated at 60,000 barrels per day.