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Petrobras to add 24 million cu meters/d gas output by end-2008
AFP
Rio de Janeiro
Petroleumworld.com 03 14 07
Brazil's Petrobras is eyeing building an LNG regasification terminal in
Uruguay, alongside the state-owned oil company there, to supply the gas hungry
Uruguay market, Petrobras chief executive Jose Gabrielli told reporters at
company headquarters Tuesday.The regasification terminal in Uruguay could be Petrobras' third, after
the company builds two such terminals in Brazil, in Rio de Janeiro and Ceara
states, to process 14 million cu meters/d and 6 mil cu meters/d, respectively,
by next year.Gabrielli said the Urguayan unit could be around the scale of the Ceara
unit. "It would depend in how much is needed to supply the Urugayan market,"
he said.The Petrobras chief also said Brazil's liquids output is on track to rise
8% this year to 1.92 million b/d from the 2006 average of 1.78 million b/d, as
Petrobras brings onstream several large offshore platforms near Brazil.Gabrielli also said he sees few, if any, market factors on the horizon
that could substantially effect current oil prices. He said Petrobras now
estimates that world benchmark oil prices will stay in a range of
$55-65/barrel over the next five years, as global demand for oil rises by an
estimated 1.8%/year.Petrobras, meanwhile, will quickly boost its natural gas output in Brazil
to make up for a deepening gas supply shortfall as domestic gas demand rises
by about 20%/year, Gabrielli said. The company has plans to boost gas
production in Brazil by 24 million cu meters/d before the end of 2008.Gabrielli said current Brazilian gas demand for commercial use is 42
million cu meters/d, and neighboring Bolivia currently supplies 24 million cu
meters/d of that. The commercial gas figure does not include the gas that
Petrobras uses at its own installations.Petrobras also said it plans to begin building this year a major sugar
cane ethanol pipeline, which will be oriented toward ethanol exports to Japan.
The pipeline, which earlier was estimated to cost as much as $500 million,
would go from the interior state of Goias to near the coastal region of
southeastern Sao Paulo state.Gabrielli added, however, that before construction begins on the ethanol
pipeline, Petrobras plans to sign long-term supply deals with companies
including Mitusi to supply Japan with around 3 billion liters/year of the
product. The company earlier said that that level of exports to Japan could
come as early as 2010.--Josh Schneyer, newsdesk@platts.com
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Platts 13 03 07
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