Agência Brasil*
Brasília – The government of Brazil plans to build a 920 kilometre pipeline for the transport of ethanol from Campo Grande, the capital of the midwestern Brazilian state of Mato Grosso do Sul, to Paranaguá Port, in the southern Brazilian state of Paraná. The objective, according to the minister of Mines and Energy, Edison Lobão, is to transfer the alcohol from the area of production to the foreign market.
"The idea is to have export logistics at competitive prices, making use of the market opportunities generated by the potential excess alcohol produced in the region," stated the minister at a ceremony that marked the signing of a technical cooperation contract establishing a study group whose job it will be to evaluate the technical possibility of establishment of the pipeline.
The study should be developed by Petrobras technicians in partnership with the governments of Mato Grosso do Sul and Paraná. Lobão revealed that in 2006 Petrobras hired a consultancy company to evaluate the possibility of building a pipeline in the same stretch. "But, based on the expectations of growth on the domestic market, together with greater production costs, the studies showed, at the time, that the enterprise was not viable," he said.
Now the study group, according to the minister, will be responsible for the prior analysis. It will not only analyse financial viability, but also define the route for the pipeline, study the volume of alcohol production in the region, evaluate the environmental impact and also elaborate the budget of the enterprise. The deadline for conclusion of the report is up to 90 days.
Brazil is the second main global producer of ethanol. The country produces 22 billion litres per year. "We are heading to be the first," forecasted Lobão. According to him, the states of Mato Grosso and Mato Grosso do Sul answer to half the ethanol produced in the country. "This is a growing country," said the minister.
The cooperation agreement for the creation of the group to execute the viability study for the pipeline was signed on Friday (20) between Petrobras and the governments of the states of Mato Grosso do Sul and Paraná. On the main trunk, between the cities of Paulínia and Guararema, the alcohol pipeline will have a capacity for the transfer of up to 12 million cubic metres of ethanol per year, four million through Ilha d’Água terminal, in Rio de Janeiro, and eight million through São Sebastião terminal, in São Paulo (both states in SE Brazil).
Construction should begin in the first half of 2009 and investment should reach US$ 1 billion. The works should be complete by 2010. The project should be under the responsibility of Petrobras and includes the construction of a second stretch, to connect the Tietê-Paraná waterway to Paulínia Terminal.
*Translated by Mark Ament