Petrobras funded for Amazonas pipelines

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec. 20 -- The Brazilian National Social and Economic Development Bank (BNDES) has awarded state-owned Petroleo Brasileiro SA (Petrobras) 2.49 billion reais for the construction of pipelines in Amazonas state.

The funds will be designated for use by Transportadora Urucu-Manaus SA, which will construct a 383-km, 20-in. natural gas pipeline connecting Coari and Manaus, where it will have two delivery points.

Additionally, TUM SA also will build distribution branches to supply seven municipalities located along the pipeline route and a 279-km, 10-in. LPG pipeline connecting the Arara Pole in Urucu to the Solimoes Terminal in Coari.

The gas will be used initially for thermoelectric power generation in Manaus, replacing fuel oil generators now in use. Gas will later be used to supply the region's industrial, vehicle, commercial, and residential sectors.

The project also includes the re-adaptation of an existing 18-in. pipeline between Urucu and Coari, which will be interconnected to the 20-in. line, allowing for gas production outflow.

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