GS Caltex drops planned Brazil refinery project

Korea’s second-largest oil refiner, GS Caltex, said it has dropped plans to build a refining plant with GS Energy and Brazil’s state-run oil firm Petroleo Brasileiro SA.

“We decided not to go for the project. We dropped it completely, and so has GS Energy, as we are not sure whether it would be a profitable project,” said GS Caltex Chairman Hur Dong-soo on the sidelines of the World Energy Congress in Daegu.

GS Caltex is equally owned by Chevron Corp, the second-largest U.S. oil company, and Korea’s GS Energy, which is owned by GS Holding.

In June, Petrobras signed an accord looking at a possible partnership to build a 300,000 barrel-per-day low-sulfur diesel refinery starting in late 2017 near Fortaleza on Brazil’s northeastern coast.