This excerpt taken from the PBR 6-K filed Apr 17, 2006.
The expansion of the transportation infrastructure is fundamental if the natural gas sector in Brazil is to reach the market maturity stage. The Southeast Northeast Gas Pipeline Interconnection is included among the projects under Petrobras Strategic Plan, which envisages the allocation of capital expenditures of US$ 6.5 billion in the next five years for the gas and energy segment. The Interconnections construction, made up of a total of 1,215 km of pipelines, will allow the interlinking of gas imported from Bolivia and gas produced in the Brazilian Northeast and Southeast with the consumer market in both regions.
Gasene will meet the shortfall in gas supplies to the Northeast Region, increase the distribution of Bolivian gas and create new markets, notably between Cabiúnas in the state of Rio de Janeiro and Catu in the state of Bahia. Once unveiled, the pipeline will also permit the monetization of existing and future gas reserves from the Campos, Santos and Espírito Santo basins and provide greater flexibility for the redistribution of gas supplies to meet eventual fluctuations in demand. For all these reasons, Gasene is fundamental to the consolidation of the Brazilian natural gas industry by integrating the South, Southeast, Midwest and Northeast markets.