This excerpt taken from the PBR 6-K filed Dec 14, 2006.
GASENE Project Financing
(Rio de Janeiro, December 14, 2006). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that two loans totalling R$1.36 billion have been contracted with Banco Nacional de Desenvolvimento Econômico e Social (BNDES) to the special purpose company, Transportadora GASENE S.A., responsible for the implementation of the Southeast Northeast Interconnection Gas Pipeline Project - GASENE.
The first loan, in the amount of R$ 1.05 billion, will be used for the acquisition of pipes for the Cacimbas (ES) - Catu (BA) - GASCAC Gas Pipeline, nearly 940 kilometers long, representing an estimated total investment of R$ 3.5 billion. The second, in the amount of R$ 312 million, will be used for the construction of the Cabiúnas (RJ) - Vitória (ES) - GASCAV Gas Pipeline, approximately 300 kilometers long, with a total investment of R$ 1,5 billion.
The Gasene Project consists in constructing natural gas transport pipelines, with total extension of 1,4 thousand kilometers and transport capacity of 20 million cubic meters per day, connecting the Cabiúnas Terminal, in Rio de Janeiro, to the city of Catu, in Bahia. The project comprises the following sections: Gas Pipeline Cabiúnas (RJ) - Vitória (ES); Gas Pipeline Vitória (ES) - Cacimbas (ES) - (under construction with expected completion in the second half of 2007); and Gas Pipeline Cacimbas (ES) Catu (BA).
The Gasene Project is part of Petrobras Gas Production Anticipation Plan - Plangas (Plano de Antecipação da Produção de Gás), which aims to increase natural gas production and supply in the Southeastern region, in 2006/2010 time frame. Plangas targets an increase of approximately 24 million of m3/day in the supply of natural gas in the South-Southeast, raising the current availability of 15,8 million of m3/day to 40 million of m3/day by the end of 2008.
Gas Pipeline Cabiúnas - Vitória (GASCAV)
Gas Pipeline Cacimbas - Catu (GASCAC)