Brazil: Algas Delays Bidding for Two Natural Gas Pipelines Projects

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Researched by Industrial Info Resources (Cordoba, Argentina)--Gas de Alagoas S.A. (Algas) (Alagoas, Brazil), which oversees the distribution of natural gas in the state of Alagoas, is delaying the bidding process for the installation of two natural gas pipelines that had been planned to start this year. Algas, which is owned by the Alagoas provincial government, cited financial issues.

The selection of the company to perform the project had been scheduled to be completed in November 2013; however, the selection is now expected to begin by the end of January 2014, and the pipeline contractor firm is to be selected in March. When the contractor is selected, the installation will begin in May.

The pipeline to be installed is 66 kilometers long and has a 6-inch diameter. It will begin in the city of Penedo and end in the city of Arapiraca. This pipeline will supply eight minor cities in the region and cover Arapiraca's demand. The completion date set for this part of the project is August 2016.

The second pipeline to be installed is 16 kilometers long and has a 6-inch diameter. It will begin in the city of Pilar and end in the city of Marechal Deodoro. The natural gas will supply increasing demand from the region's industries. This installation of this project is scheduled to be completed by April 2015.

These two projects are still a priority for Algas, which is seeking to expand the distribution of natural gas to new regions and to address increasing demand.

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