Petrobras and China’s Sinopec sign contract to build gas pipeline in Brazil

18 April 2006

Rio de Janeiro, Brazil, 18 April – Brazilian state oil company Petrobras and Chinese group Sinopec said Monday they had signed a contract worth US$239 million for building a gas pipeline in Brazil.

The Chinese company will be responsible for the design and construction of the Cabiúnas-Vitória pipeline, which will transport natural gas to the Southeast and Northeast of Brazil.

The project will link the cities of Cabiúnas, in the North of Rio de Janeiro state, to Vitória, the capital of the neighboring state of Espírito Santo, in the southeast of the country.

The construction is expected to be concluded within 15 months, according to a statement sent by Petrobras to the Sao Paulo Stock Exchange (Bovespa).

The pipeline will have the capacity to transport 20 million cubic meters of gas per day, and will be 28 inches in diameter and around 300 kilometers long.

Increased availability of natural gas on the Brazilian market is one of Petrobras’ strategies, which plans to invest US$6.5 million over the next five years in this sector.

The contract signed with the Chinese group is only the first of a project that includes the construction of a total network of 1,215 kilometers to allow for distribution of natural ags imported from Bolivia as well as that produced in Brazil. (macauhub)