Brazil planning $500 million ethanol pipeline network by 2008
Rio de Janeiro. 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.
Platts.
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.
Platts.
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