Brazil Studies Construction of Its First Alcohol Pipeline

Brazilian Petroleum, S.A. – and the government of the state of Goiás (through its Department of Infrastructure) signed a protocol of intentions today to conduct joint technical-financial studies on infrastructure investments for the exportation of fuel alcohol.

One of the projects being contemplated is the construction of the country’s first alcohol pipeline, linking the Paulinia refinery (Replan) in São Paulo to the Senador Canedo terminal in Goiás, with capacity to transport 4 billion liters. The investment will amount to around US$ 225 million.

The president of the company, José Sérgio Gabrielli, and the governor of Goiás, Marconi Perillo, participated in the ceremony, which was held at Petrobras’ headquarters in Rio de Janeiro.

Last month, Brazil’s Minister of Agriculture, Livestock, and Supply, Roberto Rodrigues, said that he will examine the availability of funds for the installation of 73 new sugar mills between now and 2012, in order to raise the country’s alcohol production.

According to Rodrigues, it will be necessary to increase the area of sugar cane cultivation by around 2.5 million hectares to meet the demand for sugar and ethanol.

The Minister believes that fuel consumption will grow in Brazil, due to the demand for flex cars, which can burn both gasoline and alcohol fuel, and the reduction in world sugar supplies.

"If this increase in demand for flex cars does in fact occur, eight years from now we will need another 12 billion liters of ethanol," he said, adding that ethanol is a strategic product for Brazil.

The minister ruled out the need for Brazil to import alcohol in consequence of the rise in prices since the beginning of the year. He said that the government expects the lower sugar mill prices provided for in the agreement signed with producers early in the month to be passed along to consumers.

ABr

Tags:

You May Also Like

Brazilian Food Giant Sadia Beefs Up Old Plant with US$ 79 Million Investment

Sadia's old plant in Toledo, in the southern Brazilian state of Paraná, which received ...

For 20 Years the Ribeira Valley in Brazil Has Resisted. But the Odds Are Bad

In 1969, Brazilian guerilla leader Carlos Lamarca, member of the VPR (Popular Revolutionary Vanguard) ...

Brazilian Firm Armors Cars in Jordan for Iraq

Multinational High Protection Company (HPC) has four car armoring factories around the world, two ...

Brazil Industry Grows 3.3% Led by Autos, Metallurgy and Food

The sectors of automotive vehicles, basic metallurgy, and food and beverages have led Brazilian ...

The Winners and Losers of Brazil’s Biosecurity Law

The Brazilian Senate just passed the Law of Biosecurity, which among other things gives ...

UN Says Death of Brazilian General in Haiti Does Not Change Peace Mission

The director of the United Nations (UN) Information Center in Brazil, Carlos dos Santos, ...

In Brazil, Women Have Better Schooling than Men, But Worse Wages

Brazilian women conquered more space on the labor market in 2003 and surpassed men ...

Frequent trouble with air traffic in Brazil has caused delays and long lines

By Killing Probe on Air Traffic, Brazil Misses Chance to Show Public Spirit

Despite the surprises and resentments related to the Brazilian cabinet reform, the subject in  ...

Brazil May Become Soon Main Producer of Wheat in Latin America

Brazil is catching up with Argentina as Latinamerica's main producer of wheat. This with ...

Argentina Is Just Jealous, Says Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva yesterday acknowledged tension with Argentina but predicted ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`