Petrobras Launches Boaventura UPGN, Secures Natural Gas Supply Deal for Southern Brazil Steel Mills

Petrobras has officially launched commercial operations at its natural gas processing unit (UPGN) within the Boaventura Energy Complex, marking a pivotal expansion in Brazil's domestic gas supply capabilities. The Boaventura UPGN is part of Petrobras' broader commitment to enhancing local natural gas production, reducing dependence on imports, and bolstering Brazil’s energy independence. Currently, the first module is online and processing 10.5 million cubic meters per day (mcm/d). By year’s end, a second module will become operational, doubling capacity to 21 mcm/d.

This new facility is strategically important, as it processes raw natural gas into valuable derivatives like natural gas, liquefied petroleum gas (LPG), and C5+ components used in petrochemical and fuel production. The UPGN aligns with Petrobras' emphasis on the domestic market, strengthening the Brazilian energy sector. The processed gas from Boaventura is part of the Rota 3 Integrated Project, a key element in the Santos Basin Integrated Gas Flow System. This infrastructure channels gas from key pre-salt fields, including Tupi, Búzios, and Sapinhoá, directly into the Brazilian market, contributing to a stable and enhanced supply chain.

Petrobras' director of industrial processes and products, William França, highlighted the project’s operational complexity and significance, stating: “The commercial launch of the Boaventura UPGN marks the beginning of an integrated project with high operational complexity, ranging from exploration to delivery at the UPGN exit and reaffirms our purpose of offering a greater volume of gas to the national market. These are new infrastructures with an outflow capacity of up to 18 mcm/d and a processing capacity of 21 mcm/d, which contribute to the country’s development while ensuring the company’s financial sustainability.”

In addition to expanding processing capacity, Petrobras has signed significant natural gas supply agreements with Gerdau, Brazil’s leading steel producer, and Sulgás, a natural gas distributor. These agreements represent a shift in Rio Grande do Sul’s industrial gas market as Petrobras is now supplying gas under a free trading environment, a first for the state. Specifically, Petrobras will supply natural gas to Gerdau’s specialty steel production unit in Charqueadas and the Riograndense long steel production plant in Sapucaia do Sul. This transition from a captive to a free market model is supported by new regulatory approvals from AGERGS, the state’s regulatory agency, and the government of Rio Grande do Sul.

Petrobras’ ventures at the Boaventura UPGN and these strategic supply contracts highlight its leadership in developing Brazil’s domestic natural gas sector while advancing towards a more flexible and competitive energy market for industrial users. These projects not only underscore Petrobras' role in supporting Brazil's industrial growth but also reinforce its financial and operational sustainability for the future.