Private Companies to Utilize Transpetro’s Ethanol Transport Facilities

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Researched by Industrial Info Resources (Sugar Land, Texas) -- In September 2007, Transpetro, Brazil's state-owned oil company Petroleo Brasileiro SA (PBR) transportation unit, will open up its ethanol transport system to private companies, which will be able to benefit from Transpetro’s system of truck transport from ethanol production areas to the Paulinia refinery near Sao Paulo. The National Petroleum Agency, ANP, has allowed Transpetro to provide transport services by operating pipelines and terminals for crude, its byproducts and other compatible liquids. The pipeline grid covers 5,873 miles and 43 terminals, 20 onshore and 23 shipping. Therefore, private companies will also be able to use Transpetro pipelines to the Ilha d'Agua export terminal in Rio de Janeiro, and Terminal.

At present, Transpetro has a 2 billion liters of ethanol a year transport capacity which will be elevated to 12 billion liters per year once the two planned ethanol-only pipelines that are to transport ethanol from central Brazilian production areas to Atlantic sea ports are completed. Furthermore, Petrobras' transport system will allow saving up to a 30% in ethanol transport costs. The ethanol will be taken from the mill and put on a ship for export. Petrobras’s authorities have stated that the company will not elevate its ethanol production level; on the contrary, it aims at becoming the country’s leading company in market logistics and ethanol distribution by strengthening the areas Petrobras feels more competitive in.

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