ERHC Energy Inc (ERHE)

[RubyMartin]

Brazil: China’s BDC and Sinopec involved in building of gas pipeline [ 2008-01-02 ]


Brasilia, Brazil, 2 Jan - Petrobras subsidiary Transportadora Gasene has obtained a US$ 4.51 billion reais loan with Brazilian federal development bank BNDES to build a gas pipeline connecting southeast and northeast Brazil, the bank announced last Thursday.

The total loan granted to Transportadora Gasene is equivalent to US$ 2.25 billion, some US$ 750 million of which will come from the China Development Bank, which has signed an accord to provide the loan through BNDES.

The Gasene project is strategic to ensure supplies of natural gas to networks in southeast Brazil from gas fields in the Espirito Santo basin.

The pipelines will total 1,400 kilometers in length and have an installed capacity of 20 million cubic meters daily, linking the Cabiunas terminal, in Rio de Janeiro state, to the city of Catu in Bahia state.

The project involves the building of the following stretches: Cabiunas-Vitoria, due for completion in 2008; Vitoria-Cacimbas, which began operating in November; and the Cacimbas-Catu pipeline, around 940 kilometers long and whose construction will start in the first quarter of 2008.

Petrobras has contracted China’s Sinopec to construct the Cabiunas-Vitoria and Cacimbas-Catu pipeline sections. (macauhub)