22 November 2010 23:28 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian state-run energy company Petrobras will begin construction of an ethanol pipeline on Tuesday, predicting the 850-kilometre system would reduce freight costs and make the Brazilian biofuel more competitive.
The project, which has a price tag of Brazilian reais (R) 5bn ($2.9bn), would initially connect ethanol mills in southern Brazil to a Petrobras’ refinery in Sao Paulo state.
The 21m m3 (cubic metre)/year system would also include barges that will operate on a river network in Sao Paulo.
It would later be extended and eventually reach sugarcane mills in central Brazil as well as port terminals in Sao Paulo and Rio de Janeiro.
The pipeline was a partnership between Petrobras and Brazilian conglomerate Camargo Correa.
Petrobras did not say when the system would begin operating, but a company official last year predicted Brazil would have a large ethanol pipeline system up and running by 2012.
Brazil is the world’s second-largest ethanol producer, but the top exporter of the biofuel.
($1 = R1.72)
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