ERHC Energy Inc (ERHE)

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Sinopec Group Starts Building Natural Gas Pipeline in Brazil

June 12 (Bloomberg) -- China Petrochemical Corp., Asia's largest refiner, started the construction of a natural gas pipeline in Brazil on June 10 to meet rising demand in the South American nation.

China Petrochemical, parent of overseas-listed China Petroleum & Chemical Corp., or Sinopec, will build the 1200- kilometer (746-mile) pipeline within 15 months, according to a statement on the Web site of China's Ministry of Foreign Affairs.

Petroleo Brasileiro SA, Brazil's state-controlled oil company, hired China Petrochemical, or Sinopec Group to build the gas pipeline for $239 million, the company said in a statement to the Sao Paolo stock exchange on April 17.

The pipeline is part of a $6.5 billion investment plan by Petrobras to build pipelines linking the country's northeast and southeast to ease future gas shortage in the country.