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A study conducted by Portuguese oil company Petrogal has identified the Brazilian state of Pernambuco as the country's most suitable to build a new refinery, O Estado de S. Paulo reported Friday.
Petrogal has considered investing in refining in partnership with Petrobras, the Brazilian state-run energy giant.
Petrogal concluded that Pernambuco has the best port of the Northeast. Apart from that, it is at a 300-kilometer radius from the main consumer markets of the region, which facilitates the logistics of fuel distribution, the study concluded.
Three Brazilian states compete aggressively for the new refinery. Apart from Pernambuco, there is Ceara in the Northeast and Espirito Santo, a major oil producing state, in the Southeast.
But Petrogal's refinery project has been at a standstill since 2000, when the study was conducted by the Portuguese company, because Petrobras apparently lost interest in it, O Estado reported.
Originally, the refinery would have capacity to process 200,000 barrels per day. The refinery would require investments of $2 billion.
by Ana Mano