Communicator

Braskem, Brazil’s leading petrochemical producer, has quietly placed three of its five North American polypropylene (PP) facilities on the block, marking a dramatic shift in its global footprint. According to reports, the company is in advanced discussions with Unipar Carbocloro S.A. (Unipar) for the potential sale of its La Porte (TX), Oyster Creek (TX) and Seadrift (TX) plants for up to $1 billion.

The move comes as Braskem seeks to shore up liquidity and streamline its operations following years of heavy debt incurred during a high-stakes turnaround from its Lava Jato–related bankruptcy restructuring. While Braskem has emphasized that its core strategy remains focused on Brazil and Mexico, the proposed divestment of U.S. PP assets signals a readiness to exit mature, lower-growth markets in favor of higher-return investments.

In parallel with Unipar’s approach, Brazilian financial press outlet Brazil Journal first revealed that Braskem had formally offered its U.S. assets for sale, stating that the company engaged investment banks to solicit interest from multiple bidders. Although negotiations with Unipar are the furthest along, sources say private equity funds and regional industrial groups also submitted non-binding bids.

Analysts highlight several drivers behind Braskem’s decision:

🔵 Debt Reduction: Braskem’s gross debt remains elevated, even after asset sales and a rights offering. Monetizing stable, cash-generating U.S. plants would free up capital to accelerate deleveraging and fund strategic projects in its ethylene and PVC complexes closer to home.

🔵 Portfolio Focus: North American PP margins have been pressured by recent U.S. tariff uncertainty and overcapacity. By divesting these three mature Spheripol- and Unipol PP-based facilities, Braskem can redeploy resources toward faster-growing markets—such as advanced recycling and biopolymers—where it holds leading market positions.

🔵 Operational Simplification: Managing five separate U.S. sites—three in Texas, one in Pennsylvania and one in West Virginia—has stretched Braskem’s regional management bandwidth. A leaner footprint would streamline logistics, procurement and regulatory compliance.

Regional stakeholders note, however, that the proposed sale of La Porte and Oyster Creek alongside the smaller Seadrift facility will still leave Braskem with two U.S. plants—Marcus Hook (PA) and Neal (WV)—that collectively account for 590 ktpa of PP capacity.

Unipar, the leading contender to acquire the assets, would gain immediate scale in North American PP and bolster its feedstock integration strategy. Sources say Unipar’s non-binding 2023 bid for Braskem equity laid the groundwork for intensified talks on the U.S. plants this summer.

Braskem’s management insists that no binding agreement has been signed and that talks remain subject to due diligence and regulatory approvals. Nevertheless, the near-consummation of this transaction underscores a broader inflection point for Brazil’s petrochemical champion: a pivot away from legacy assets in search of a leaner, higher-growth future.

#braskem #petrobras #unipar #polypropylene #unitedstates #productionplants #ppassets

#rnes #petrobras #brazil #snox

Petrobras entity description on Portfolio Planning PLUS

Petróleo Brasileiro S.A. (Petrobras) has signed contracts worth $892 million with São Paulo-based Consag Engenharia to complete construction of Train 2 at its Abreu e Lima Refinery (RNEST) in Pernambuco, marking a significant milestone in Brazil's quest for energy self-sufficiency.

Strategic Investment Framework

The RNEST expansion is part of Petrobras' ambitious 2025-2029 business plan, which allocates $111 billion in total investments, with $19.6 billion specifically dedicated to the Refining, Transportation, Marketing, Petrochemicals and Fertilizers (RTM) segment—a 17% increase from the previous plan. This strategic focus aims to increase Petrobras' total distillation capacity from 1.81 million barrels per day (bpd) to 2.1 million bpd of crude oil.


Abreu eLima refinery | Photo: Brazil de Fato, June 20, 2022.

RNEST Expansion Details

The three awarded contracts cover critical processing units for Train 2:

• Atmospheric Distillation Unit (UDA): 130,000 bpd capacity
• Delayed Coking Unit (UCR): 75,000 bpd processing capability
• Diesel Hydrotreating Unit (UHDT-D): 82,000 bpd capacity for 100% S-10 diesel production

Upon completion in 2029, RNEST's total capacity will double from 130,000 bpd to 260,000 bpd, making it Petrobras' second-largest refinery. The expansion will generate approximately 30,000 direct and indirect jobs during construction and operation.


Delayed coker at Abreu e Lima refinery | Credit: Petrobras

Technological Leadership

RNEST already demonstrates Petrobras' commitment to advanced refining technology. In December 2024, the refinery commissioned the Americas' first SNOX emissions abatement unit, supplied by Topsoe AS, which converts sulfur oxides and nitrogen oxides into marketable sulfuric acid while improving energy efficiency. This positions RNEST as a benchmark for environmental technology in refining operations.


SNOX technology description on Portfolio Planning PLUS

The refinery currently achieves the highest crude oil-to-diesel conversion rate in Brazil at 70%, and the expansion will enable 100% S-10 diesel production, meeting Brazil's stricter environmental standards.

Strategic Impact

Energy Security Enhancement: The expansion addresses Brazil's growing fuel demand, particularly in the north and northeast regions that traditionally rely on imports. Petrobras plans to increase S-10 diesel production capacity by 290,000 bpd across its refining system.

Economic Rationale: CEO Magda Chambriard emphasized that "RNEST is strategic for Brazil, as it is Petrobras' hub in the North and Northeast regions," highlighting the project's role in national energy security.

Financial Performance Context

Petrobras' strong financial position supports these investments, with the company reporting a 48.6% year-on-year increase in net profit to 35.2 billion reais in Q1 2025, and adjusted EBITDA of 61 billion reais.

Broader Refining Portfolio

Beyond RNEST, Petrobras is implementing refining capacity expansions across multiple facilities, including new units at REPLAN and GASLUB, alongside modernization projects at REDUC, REVAP, and REGAP. The company is also advancing its BioRefining program to produce low-carbon fuels, including R5 diesel and sustainable aviation fuel (SAF).


Petrobras Refineries | Market Intelligence by Portfolio Planning PLUS

Looking Forward: With RNEST's expansion and the comprehensive refining investment program, Petrobras is positioning itself to maintain its dominance in Brazil's energy sector while supporting the country's transition toward cleaner fuels and greater energy independence. The systematic modeling of these developments on platforms like ppPLUS will be crucial for tracking the progress and impact of these strategic investments.

#petrobras #refinery #refining #rnest #snox #capacityexpansion