São Paulo – The Brazilian state-owned oil company Petrobras and its biofuel industry subsidiary have signed a memorandum of understanding with Petrochina International Company Limited. The company is a Chinese state-owned company and the agreement aims to conduct studies in order to look into the possibility of the two companies producing ethanol together in Brazil to supply the Chinese market.
The duration of the memorandum signed is six months, according to information disclosed by the Petrobras press office. During that period, the companies are going to assess technical and economic viability for developing joint projects, aiming to export to China.
Due to the lack of conditions for producing ethanol locally, and to the adoption of the practice of mixing ethanol into gasoline, China not only wants to ensure its supply in Brazil, but also produce the green fuel in the country. Petrochina, according to Petrobras, considers the Brazilian oil company its natural partner for the project, due to the trade relations that they already have and the possibility of synergies.
*Translated by Gabriel Pomerancblum
