Petrobras Buys Logum Ethanol Pipeline Firm

BRAZIL ENERGY · DEALS

Brazil’s state-run oil giant is buying the pipes that carry ethanol from its mills to its biggest cities. The price is R$620 million, about US$111 million.

Brazil’s biggest oil company is buying the road that its ethanol travels on. Petrobras, the state-run energy group, agreed on Thursday 12 November 2026 to buy the 70% of Logum Logística, an ethanol pipeline operator, that it does not already own.

At R$620 million (about US$111 million at 5.60 reais per dollar, RT rate of 12 November), it is a modest purchase for one of the largest companies in Brazil’s economy. Cade, the antitrust regulator, must still approve it.

Who Sold, and How Will Petrobras Pay?

The sellers are Raízen Energia (30%), Copersucar (30%) and Uniduto Logística (10%, a minority shareholder). Raízen is a large Brazilian fuel and sugar-ethanol producer, and Copersucar is a major sugar and ethanol trader.

Petrobras already holds the other 30%. It will pay R$300 million (US$54 million) at closing, then R$160 million (US$29 million) after 12 months and R$160 million after 24 months, subject to contract adjustments.

Raízen is also in the middle of a debt overhaul. A São Paulo court approved its out-of-court restructuring plan on 30 July 2026, covering about R$61.4 billion (US$11 billion) of debt.

What Does Logum Actually Do?

Logum runs ethanol pipelines of more than 1,000 kilometres. Its terminals sit in Uberaba (Minas Gerais state) and in Ribeirão Preto and Paulínia (São Paulo state), where mills deliver the fuel.

From the terminals, the fuel flows to distribution hubs in Barueri, Guarulhos, São Caetano do Sul and São José dos Campos in São Paulo state, and to Duque de Caxias in Rio de Janeiro state. A marine terminal at Ilha d’Água in Rio loads tankers for coastal shipping and exports.

Petrobras says it will link the pipelines to its own logistics system and to the Ilha d’Água port terminal. It points to rising ethanol demand, especially corn ethanol from Brazil’s Centre-West grain belt.

In 2018, Cade cleared the sale of stakes held by the Brazilian construction groups Odebrecht and Camargo Corrêa, leaving Petrobras, Raízen and Copersucar with 30% each. Eight years later, Petrobras is moving to own all of it.

Why Does This Matter for US Readers?

The likely winner is Petrobras, which gains control of a route for a fuel that is growing. For holders of its New York-listed shares (ADRs, US-traded receipts of Brazilian shares, ticker PBR), the price is small, and the strategic gain depends on Cade’s approval.

Brazil is the world’s second-largest ethanol producer after the United States, so pipeline control affects a market that American farmers and fuel traders watch. The open question is whether rival fuel distributors that use Logum keep fair access once Petrobras owns it.

What Is Not Known

No closing date has been given, and Cade approval is still required. It is not known whether Raízen’s restructuring played a part in the sale.

A Cade approval would confirm the deal and trigger the first payment of R$300 million (US$54 million). A rejection or conditions would reshape it.

Frequently Asked Questions

What did Petrobras agree to buy?

It agreed to buy the 70% of Logum Logística it does not own, from Raízen, Copersucar and Uniduto. Logum runs ethanol pipelines of more than 1,000 kilometres in São Paulo and Minas Gerais states.

How much will Petrobras pay for Logum?

The total is R$620 million, about US$111 million. It is paid in three parts: R$300 million at closing, then R$160 million after 12 months and R$160 million after 24 months, subject to contract adjustments.

Sources: Petrobras, statement to the market of 12 November 2026; Cade, Brazil’s antitrust regulator; São Paulo bankruptcy and restructuring court, Raízen ruling of 30 July 2026; RT (USD/BRL, 12 November 2026).