Petrobras (PBR)

Gas pipeline construction and liquefied natural gas projects

The gas pipeline network Petrobras is either currently constructing or that it plans to build involves total investments of R$15 billion (R$12.5 billion through 2010) and deploying liquefied natural gas (LNG) projects, which are budgeted at R$5 billion (R$2.9 billion through 2010). Learn more about the main projects below:

• Urucu – Manaus gas pipeline: Extending for 662 km, this pipeline will transport natural gas produced in Urucu to Manaus. The project includes building a pipeline between Urucu and Coari to flow the liquefied petroleum gas (LPG) production. It is slated to go online in the first quarter of 2008 and to involve investments nearing R$1.26 billion.
  
  
• Southeast – Northeast Gas Pipeline (Gasene): Designed to fully interconnect the Southeastern gas system to the Northeastern one, the project includes the Cacimbas – Catu, Cacimbas – Vitória and Cabiúnas – Vitória sections. Together with the gas pipelines in the Northeastern Network, such as the Catu-Carmópolis (265 km long, with a flow of 9,1 million cubic meters a day, and with operations foreseen to commence in the second quarter 2008), it involves investments of R$4.6 billion through 2010.
  
  
• Southeastern Network: Campinas-Rio Gas Pipeline construction, which will extend for 453.6 km, be capable of transporting 5.8 million cubic meters a day of natural gas, and involve total investments estimated at R$862.5 million.
  
  
• Liquefied Natural Gas (LNG): Projects are currently being studied to contract converted vessels to re- gasify the LNG which will be installed in the Guanabara Bay (Rio de Janeiro) and in the Pacém Port (Ceará). This project is hoped to go online in the first quarter 2009, involving investments of some R$2.0 billion through 2010.

Rio de Janeiro Petrochemical Complex

The biggest individual project ever carried out by Petrobras, with total investments topping-out at R$21 billion (R$8.2 billion up to 2010) and undertaken in partnership with private partners, the Rio de Janeiro Petrochemical Complex (Comperj) will be capable of processing 150 thousand barrels of Brazilian heavy oil per day. The Complex will be formed by one Basic Petrochemical Product Production Unit (BPU) and by six second-generation petrochemical units.

The project includes the São Gonçalo Intelligence Center, a logistics base in São Gonçalo, and the oil supply pipeline. Construction is expected to start off in 4Q 2008 and operations are hoped to commence in 2012.

Comperj’s production will change the Brazilian petrochemical sector from the structural standpoint. The complex’s main products will include: Diesel fuel, ethane, propene, benzene, paraxylene and butadiene in the first generation, while polyethylene, polypropylene, PET, PTA, ethylene glycol and styrene in the second.

Abreu e Lima Refinery (Northeast)

Designed to process 200 thousand barrels of heavy oil per day, the refinery will be constructed in association with PDVSA, the Venezuelan national oil company, in the state of Pernambuco. Investments are foreseen for port infrastructure, water supply, for the construction of an effluent tabulation and a power transmission line, for oil and byproduct outflow pipelines, over and beyond investments in social projects in the region.

Earthwork will commence in July 2007, deployment is expected for the first half of 2008, and, finally, operation is hoped to go online in 2012. Total investments will involve some R$ 10 billion (R$5.6 billion through 2010). The Abreu e Lima Refinery will produce, in produced volume order, diesel fuel, coke, naphtha, LPG, and bunker. It will be aimed especially at supplying Northeastern state demand.