Petrobras
planning $500-mil ethanol pipeline network by 2008
PLATTS
RIO
Petroleumworld.com
04 14 06
Brazil's Petrobras plans to build a $500 million network of sugarcane
ethanol pipelines by 2008 in a move that could help the oil company
become one
of the world's largest distributors of the popular fuel additive, a
Petrobras
official told Platts Thursday.
The main pipeline, which will travel 950 km, is key to allowing Petrobras
to cheaply transport ethanol to export-oriented Atlantic port terminals
in Sao
Paulo State, a Petrobras spokesman said. He said the information had
been
confirmed Wednesday by Petrobras ethanol and oxygenate sales manager
Paulo
Canabrava.
The ethanol pipeline would originate in Goias state, cut through Minas
Gerais state and the Riberao Preto area of Sao Paulo state before delivering
ethanol from those regions to the Petrobras Replan refinery in Paulinia,
Sao
Paulo. From Replan, the ethanol, or an ethanol mix, could be transported
for
export from the port of Santos. A feasibility study is underway, and
Petrobras
is scheduled to draw up plans to begin building this line as early as
late
2006, the Petrobras spokesman said.
A second ethanol export route Petrobras plans to use would involve
transporting ethanol by river barge from Mato Grosso do Sul State through
the
western part of Sao Paulo state and down to the southern Brazilian state
of
Parana, Canabrava said. That would involve a second, 90-km pipeline
linking
Replan to the route, he said.
At least two major potential partners for Petrobras's ethanol plans
already have emerged, signing memorandum of understanding with Petrobras.
They
are Brazilian mining giant Cia. Vale do Rio Doce, which has rising investments
in coal and hydroelectric energy, and Japan's Mitsui Trading, which
last week
said it was looking into a partnership with Petrobras to deliver ethanol
to
international markets. One major potential market for Brazilian ethanol
is
Japan, where the government is considering a mandate to add ethanol
or ETBE to
the country's gasoline.
Brazil's ethanol production is set to be around 16 billion liters this
year, up from 15.4 billion last year, according to data from the Sao
Paulo
Cane Growers Association, Unica.
--newsdesk@platts.com
PLATTS 04 13 06
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