Brazil Natural Gas Sector To Receive $14.7 Bln Investments 2006-2011

Brazilian natural gas sector will receive investments of $14.7 bln (11.665 bln euro) between 2006 and 2011, Planning and Development Secretary at the ministry, Marcio Zimmermann, said on October 25, 2006.

Brazilian natural gas sector will receive investments of $14.7 bln (11.665 bln euro) between 2006 and 2011, Planning and Development Secretary at the ministry, Marcio Zimmermann, said on October 25, 2006. The investments will help the country to boost its natural gas production to 98.1 mln cu m per day in 2011 from the present 52 million cu m per day.

Brazil produced 48.5 million cu m of gas per day in 2005, of which only 22.2 million cu m were offered on sale. The rest was used for the needs of the producers for burning and reinjection of the gas.

According to Zimmermann, the construction of new gas pipelines in the country will hit $4.708 bln (3.736 bln euro) in the period 2006 to 2011. The funds will be allocated for the construction of a total of 4,273 km of pipelines. Of the total, $2.536 bln (2.012 bln euro) are in process of investments to be earmarked for the construction of 1,850 km of pipelines.

Zimmermann underlined that the country will have to count on 20 million cu m of liquefied natural gas (LNG) per day as of 2009. Brazilian state-owned oil and gas giant Petroleo Brasileiro (Petrobras) is now building two units able to store and regasify LNG in Rio de Janeiro and Ceara states. Brazil will also count on the daily 30 million cu m of gas imported from Bolivia under an agreement valid until 2019, Zimmermann reminded.

Source: Canal Energia