Petrobras Taps Domestic Yards for Gas Tanker Newbuild Program

Brazilian state oil company Petrobras is planning to reduce dependence on charters in gas transportation and has awarded contracts for the building of a new generation of tankers, part of a fleet expansion program that is designed to boost domestic shipbuilding.

The company is announcing that after an open and international bidding process, it has signed contracts worth $520 million with Brazilian yards for the construction of five liquefied petroleum gas (LPG) tankers, 18 barges and 18 pushboats. Brazil President Luiz Inácio Lula da Silva witnessed the signing of contracts, which Petrobras says will generate more than 9,000 direct and indirect jobs.

The new fleet will be operated by Transpetro, Petrobras' shipping arm, and are being built as part of the oil major’s "Open Sea" program. This initiative is aimed at the renewal and expansion of its LPG fleet in order to reduce dependence on charters and provide greater flexibility and efficiency in its logistics operations. (Petrobras' busy chartering operation was at the epicenter of the "Operation Car Wash" bribery scandal.)

Despite stating that international companies were invited to bid, Petrobras has opted to award the contracts to domestic yards across three states in order to boost the country’s shipbuilding industry. The Rio Grande Shipyard in Rio Grande do Sul state was awarded the contract to build five pressurized ships for the transport of LPG and derivatives at a total cost of $410 million.

Three of the newbuilds will have a capacity of 7,000 cubic meters, while two will have a capacity of 14,000 cubic meters. The new vessels are expected to contribute to Petrobras sustainability goals as they will be up to 20 percent more energy efficient, will reduce greenhouse gas emissions by 33 percent and will be able to operate in electrified ports. When delivered, Transpetro's gas fleet will increase from six to 14.

Two other domestic yards will build the 18 barges and 18 pushers at a total cost of $115 million. The Bertolini Shipyard will build the barges, 10 of which will have a capacity of 3,000 dwt and the remaining 2,000 dwt. The shipyard Indústria Naval Catarinense on its part will build the 18 pushers.

The barge and pushers will see Transpetro make an entry into inland navigation, making the company one of the main operators of transportation of petroleum products and biofuels on the rivers.

“The Petrobras system is always ready to support the development of Brazil. With these hires, we are preparing Petrobras for the growth of our production in the coming years and leveraging the resumption of the national shipbuilding industry,” said Magda Chambriard, Petrobras President.

In its broader shipbuilding program, Petrobras intends to invest $6 billion over the next four years in projects that include the construction of 20 cabotage vessels, 18 barges and 18 pushers, as well as the chartering of 40 new support vessels for exploration and production activities.