New fuel terminal to be installed in northeastern Brazil

RIO DE JANEIRO, BRAZIL – The announcement was prompted by a request submitted by ethanol producer Destilaria Tabu to install a private terminal in Pitimbu, Paraíba, for the handling, storage and distribution of fuels in Brazil’s northeast.

By law, a public notice is required following this request so that potential interested parties may submit a project for the same area.

Should there be interest in the Pitimbu project, federal authorities will launch a tender to find the best option in terms of investment, job creation and other aspects.

Potential investors can submit their proposals within 30 days after the notice is published in the Federal Gazette.

The Destilaria Tabu project involves an investment of approximately R$880 (US$157) million and the implementation of a floating marine terminal that will use a monohull to service vessels. The monohull will be connected to a submarine pipeline that will reach a land-based tank farm for petroleum derivatives, biofuels, and chemical products.

The main elements of the planned infrastructure are 25 tanks to initially store gasoline, biofuel and diesel.

The products will be transported between tanks, trucks, and loading and unloading points with the help of 5 ground pumping stations, to be built as each phase of the project progresses.

The land tank farm will be divided into 3 phases. The first will include 10 tanks with a total liquid bulk capacity of 80,000m3, the second will have 7 tanks with 75,000m3 capacity and the last will have 7 additional tanks with 90,000m3 of storage.

The marine terminal will be sized to accommodate aframax vessels within 36 hours, bringing the terminal’s total capacity to about 5 million tons (Mt) per year.

The company estimates that it will handle 1.8Mt of petroleum products by the end of the third phase. It is expected to serve as a complementary terminal to the Suape port and industrial complex in the state of Pernambuco and provide increased liquid bulk handling capacity in the northeast region.

The project’s offshore area, including the tank farm and support buildings, is expected to require R$176 million in investments in the first phase, R$146 million in the second, and R$173 million in the third. Works are scheduled to be completed in 2022, 2025 and 2030.

The total investment in marine infrastructure, considering larger and deeper suezmax vessels, is R$371 million.