Brazil allows BG to use Bolivia-Brazil gas pipeline

April 17, 2001
Over the objections of Petroleo Brasileiro SA (Petrobras), Brazil's National Petroleum Agency (ANP) has determined that BG Group PLC may use part of the capacity of the 3,150 km Bolivia-Brazil gas pipeline. BG will have the right to transport 700,000 cu m/day until September and then 2.1 million until December 2002.


By an OGJ Online Correspondent

RIO DE JANEIRO, Apr. 17 -- Over the objections of Petroleo Brasileiro SA (Petrobras), Brazil's National Petroleum Agency will allow BG Group PLC to use part of the capacity of the 3,150 km Bolivia-Brazil gas pipeline.

ANP has ordered Transportadora Brasileira Gasoduto Bolivia Brazil, the operator of the pipeline for Petrobras, to allow BG to use the system from Bolivia to Sao Paulo state in Brazil.

BG can transport 700,000 cu m/day until September, when it can move 2.1 million cu m/day until December 2002. BG had asked to ship 2.1 million until December 2003.

Petrobras had planned to use all the pipeline's 30 million cu m/day capacity by 2003. But BG said by 2003, Petrobras will be transporting only 24 million cu m/day..

The Bolivia-Brazil pipeline cost $2 billion. The supply agreement with Bolivia is for a 20-year term and may be renewed.