Brazil's Petrobras to reopen ethanol centres, hike exports

10 August 2004 21:38  [Source: ICIS news]

SAO PAULO (CNI)--Brazilian oil giant Petrobras will reopen eight ethanol distribution centres in the state of Sao Paulo as part of its plans to increase ethanol exports, a company spokesperson said Tuesday.

 

The centres were built in the early 1980s as part of the government’s ethanol program, but were closed in the late 1990s.

 

With the recent boom in ethanol exports, Petrobras has decided to resume operations at the centres. There is also increased local demand because of the boom of flex- fuel cars that run on gasoline or ethanol.

 

According to a Petrobras spokesperson, the eight distribution centres should all be operational by mid-2005.

 

The first distribution centre, located in Araraquara, Sao Paulo state, will open later this year.

 

Petrobras is reportedly planning to invest Real 200m ($55.5m/Euro45m)) in a pipeline that will transport ethanol from Paulinia, Sao Paulo state to Olho D'Agua, Rio de Janeiro state.

 

In July, Brazil exported 243 404 tonne of ethanol, up sharply from 38 322 tonne in July of 2003, according to Brazil’s Ministry of Agriculture. For the 12-month period ended 30 July Brazil exported 1.4m tonne of ethanol, up from 608 443 tonne during the 12-month period ended 30 July 30, 2003.

 

Petrobras is headquartered in Rio de Janeiro.

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