Petrobras Beefs Up Ethanol Handling with Pipeline, Terminal Expansions

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Researched by Industrial Info Resources (Sugar Land, Texas)--Petroleo Brasileiro (NYSE:PBR) (Petrobras) (Rio de Janeiro, Brazil) is strengthening its handling of ethanol by beginning construction of an 850-kilometer pipeline and ethanol tank additions at existing product distribution terminals.

Work has begun on the $3.3 billion pipeline, which will be the largest pipeline of its kind in Brazil. The pipeline will have the capacity to transport 21 billion liters of ethanol annually and will replace some 1,500 tanker truck deliveries a day.

The first 202-kilometer section will run between Ribeirao Preto in Goias state, and end in Paulinia in Minas Gerais state. The remaining link will take the pipeline into Petrobras Revap refinery in Sao Jose Dos Campos, Sao Paulo state. The entire pipeline is expected to be fully operational by 2014.

The company is also expanding distribution terminal ethanol tankage in Uberaba, Ribeirao Preto and Senador Canedo, Brazil.

Petrobras is also planning to add a $65 million hydrotreater unit at the Revap refinery and has a major turnaround planned for April 2011.

The company is also constructing a 32 million-gallon-per-year palm oil-based biodiesel plant in Tome-acu, in Para state. Construction is expected to begin in mid-2012.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 177 ethanol plants in operation and 530 plants under development. It also covers 145 operational biodiesel plants and 245 biodiesel plants under development.

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