Brazil’s new mines and energy minister Alexandre Silveira said on Monday that state-run oil company Petrobras (PETR4.SA) would play a major part in expanding the refining sector, and underscored the significance of developing renewable resources.
Petrobras would urge other groups to participate in the process, Silveira said during an official event to begin his term in office.
“It is urgent that we enlarge and expand our refineries, taking them to the country’s regions and modernizing the plants,” he said, without mentioning where they would be expanding.
Silveira added that a countrywide deficit in refining capacity makes the population “hostages to the importation of oil products and natural gas,” leaving Brazil’s market exposed to “constant and abrupt fluctuations.”
The ministry and Petrobras’ new management would work “very closely” on the country’s crucial issues, he said.
The ministry would attempt to “revalue” biofuels and add them into Brazil’s main energy system through safe and efficient long-term policies, Silveira said.
Constant changes in the percentages of mandatory blends of biofuels in fuel sold at service stations weigh on the sector, he added, saying the government would sort through the technical parameters to determine an ideal blend.
Buy Crypto NowSilveira also announced the formation of a National Energy Transition Secretariat, which would be devoted entirely to structuring public policies intended to position Brazil as a world leader in clean energy – a major challenge for the new ministry.
Natural gas and biomass could be especially popular as Brazil thinks about building a medium- and low-carbon economy, added Silveira.
“The future of our generation should be guided towards innovation and the expansion of renewable resources,” he said.
