Suape ends Petrobras’ monopoly on offshore refueling

The Port of Suape, located in Cabo de Santo Agostinho near Recife, intends to offer offshore refueling services. As of now, only Petrobras provides this kind of service throughout Brazil. However, this monopoly may be broken thanks to Normative Instruction No. 2,109, published in October 2022, which allows private parties to enter this activity.

The normative act stipulates the suspension of federal taxes levied on domestic sales and the importation of bunker fuel oil used for cabotage navigation and port and maritime support. Simply put, taxes on national fuel purchases or imported by private distributors were reset. This benefit was previously only available to Petrobras.

Suape had strategically lobbied the National Council of Finance Policy (Confaz) to obtain the right to refuel ships on the high seas. As a result, the activity should attract new vessels to the Pernambuco-based port, expanding the movement of cargo and takers. In addition, fuel distributors will have the opportunity to import the bunker and store it at the port, generating more revenue from the collection of fees.

From Belém, the capital of Pará, to Salvador, in Bahia, there are no ports allowed to supply ships with bunker oil on the high seas. With that, Suape will become a reference for large vessels traveling along Brazil’s Northeastern coast. Each year approximately 20,000 ships across the region. Now, the tendency is for a 40% increase in frequency, given that the end of the refueling monopoly follows a series of measures created by the Federal Government in the BR do Mar Program, aimed at increasing cabotage navigation in the country, encouraging competition, creating new routes, and reducing costs to the Brazilian navigation sectors.

The return of autonomy and the promotion of thousands of jobs in Suape

The return of administrative autonomy of the port of Suape occurred in October 2022. It is deemed one of the largest achievements of the port complex in recent years. Such autonomy allows the port to manage its business, which wasn’t possible since law 12.815/13, which transferred to the federal level the responsibility for leasing port assets.

In 2018, Ordinance 574/2018 was instituted to regulate a provision contained in § 5 of art. 6 of the 2013 Law, which allows the port administration to elaborate bidding notices and conduct public tenders. The Port Authorities Management Index (IGAP) was then developed, indicating that port authorities must meet certain requirements to bid, hire, and supervise contracts relative to port management.

Recent announcements of deals complement the win over autonomy closed with international companies in the industrial complex. Qair’s green hydrogen production plant is the project with the highest future investment projections in Suape’s port. Two seawater desalination plants with 1 GW of electrolysis capacity will be built, with construction set to begin in 2025. About BRL 22.5 billion will be invested, generating almost 3,000 jobs and boosting Brazil to highlight the production of “green gold.”

There is also a lot of excitement surrounding the Petrobras-owned Abreu e Lima refinery, which has been operating in the Suape port complex since 2014. The venture must be given new life with more than $5 billion in investments so that the state-owned company can sell it in the future. This is the project that will create the most jobs on-site by 2027: 12 thousand jobs.

Source: Click Petróleo e Gás

To read the original article, please access: https://clickpetroleoegas.com.br/suape-poe-fim-ao-monopolio-da-petrobras-em-relacao-a-abastecimentos-de-navios-em-alto-mar/

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