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PBR's Boaventura UPGN Starts First Phase of Commercial Operations
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Petrobras S.A. (PBR - Free Report) , a Brazilian state-owned energy company, has announced the startup of the first phase of commercial operations at its new natural gas processing plant (“UPGN”) at the Boaventura energy complex (BEC). The complex, located in Rio de Janeiro, Brazil, is part of the Route 3 integrated project (PIR3). The Route 3 integrated project in Brazil is being developed to increase transportation and processing capacity for the gas being extracted from the pre-salt fields in the Santos Basin offshore Brazil.
Boaventura UPGN’s Processing Capacity
Petrobras mentioned that Train 1 of its new natural gas processing facility is currently processing approximately 10.5 million cubic meters of natural gas per day. The gas comes from the presalt cluster of the Santos Basin through the newly developed Route 3 pipeline, which spans approximately 355 kilometers. Train 2 of the natural gas processing facility is expected to start commercial operations by the end of the year, per a statement from Petrobras. Following the startup of the second train, the plant’s total gas processing capacity is anticipated to be 21 million cubic meters per day.
The natural gas processing unit at the Boaventura energy complex is part of an integrated gas-flow system, which has been developed to improve gas flows from Brazil’s pre-salt fields, including Tupi, Búzios, Sapinhoá and others.
The Boaventura UPGN receives gas from the PIR3 pipeline with a transportation capacity of 18 million cubic meters per day. The gas processing facility can process the feedstock received into at least three derivatives. Petrobras noted that the gas is not only processed into natural gas and LPG but also into C5+, a valuable raw material used in the petrochemical and fuel producing industries.
The Role of Boaventura UPGN in Brazil’s Energy Security
The Boaventura UPGN is a crucial part of the PIR3 project. The beginning of commercial operations at the Boaventura UPGN marks an important step in the project’s larger goal of increasing the supply of clean energy in Brazil. This aligns with Brazil’s plans for a low-carbon future. Additionally, utilizing the gas production from Brazil’s presalt fields should help the country reduce its dependence on energy imports. The project is expected to increase Petrobras’ competitiveness and position in the natural gas market.
In 2023, Petrobras signed more than 34 natural gas-supply contracts. These contracts, collectively, cover the planned sales of more than 70 billion cubic meters of gas up to 2034. These moves are expected to boost Petrobras’ financial position and play a key role in Brazil’s energy transition toward a low-carbon future.
Smart Sand isa low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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PBR's Boaventura UPGN Starts First Phase of Commercial Operations
Petrobras S.A. (PBR - Free Report) , a Brazilian state-owned energy company, has announced the startup of the first phase of commercial operations at its new natural gas processing plant (“UPGN”) at the Boaventura energy complex (BEC). The complex, located in Rio de Janeiro, Brazil, is part of the Route 3 integrated project (PIR3). The Route 3 integrated project in Brazil is being developed to increase transportation and processing capacity for the gas being extracted from the pre-salt fields in the Santos Basin offshore Brazil.
Boaventura UPGN’s Processing Capacity
Petrobras mentioned that Train 1 of its new natural gas processing facility is currently processing approximately 10.5 million cubic meters of natural gas per day. The gas comes from the presalt cluster of the Santos Basin through the newly developed Route 3 pipeline, which spans approximately 355 kilometers. Train 2 of the natural gas processing facility is expected to start commercial operations by the end of the year, per a statement from Petrobras. Following the startup of the second train, the plant’s total gas processing capacity is anticipated to be 21 million cubic meters per day.
The natural gas processing unit at the Boaventura energy complex is part of an integrated gas-flow system, which has been developed to improve gas flows from Brazil’s pre-salt fields, including Tupi, Búzios, Sapinhoá and others.
The Boaventura UPGN receives gas from the PIR3 pipeline with a transportation capacity of 18 million cubic meters per day. The gas processing facility can process the feedstock received into at least three derivatives. Petrobras noted that the gas is not only processed into natural gas and LPG but also into C5+, a valuable raw material used in the petrochemical and fuel producing industries.
The Role of Boaventura UPGN in Brazil’s Energy Security
The Boaventura UPGN is a crucial part of the PIR3 project. The beginning of commercial operations at the Boaventura UPGN marks an important step in the project’s larger goal of increasing the supply of clean energy in Brazil. This aligns with Brazil’s plans for a low-carbon future. Additionally, utilizing the gas production from Brazil’s presalt fields should help the country reduce its dependence on energy imports. The project is expected to increase Petrobras’ competitiveness and position in the natural gas market.
In 2023, Petrobras signed more than 34 natural gas-supply contracts. These contracts, collectively, cover the planned sales of more than 70 billion cubic meters of gas up to 2034. These moves are expected to boost Petrobras’ financial position and play a key role in Brazil’s energy transition toward a low-carbon future.
PBR’s Zacks Rank and Key Picks
Currently, PBR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Smart Sand, Inc. (SND - Free Report) , FuelCell Energy (FCEL - Free Report) and Nine Energy Service (NINE - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.