Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 6 -- Japan's Tokyo Gas Co. has bought a 15% stake in the specific-purpose companies Nova Transportadora do Nordeste SA (NTN), and Nova Transportadora do Sudeste SA (NTS), created by Brazil's state-owned Petroleo Brasileiro SA (Petrobras) to operate and maintain two natural gas pipelines in the $3 billion Malhas project in southeastern and northeastern Brazil (OGJ Online, July 11, 2003).
NTN will operate an 820-km expansion of existing pipelines in the northeast, while NTS will build a 440-km pipeline in the southeast to link Campinas in Sao Paulo state to Japeri in neighboring Rio de Janeiro state.
The NTN line will transport natural gas produced in Bolivia, and the NTS line will carry natural gas produced off northeast Brazil. Both pipelines are expected to start operating in July. Brazilian utilities will buy the gas.
The NTS and NTN lines will be linked by the $1.3 billion, 1,200-km Gasene pipeline, which will connect Macae in Rio de Janeiro, where offshore oil and gas pipelines reach land from Campos basin oil platforms, and Salvador, terminus of an existing gas pipeline that cuts across seven northeastern states to Ceara state (OGJ Online, Sept. 16, 2004).
Malhas project
The Malhas project aims to transport supplies from Brazil's gas-producing southeast to its energy-deficient northeast.
Since 1999, the country's gas consumption has grown at a much faster rate than its production, according to the US Energy Information Administration. Brazil consumed 472 bcf in 2002, an increase of 19.4% from the year earlier, while producing only 287 bcf.
In addition to Tokyo Gas, other NTN-NTS stakeholders include Japanese firms Mitsui & Co. Ltd. 35%, Mitsubishi Corp. 25%, and Itochu Co. 25%. The Japanese companies plan to transfer their pipeline assets to Petrobras after providing technical service for 10 years.
Brazilian officials hope to have the entire Malhas system in service by 2010.
