Petrobras to start Coari-Manaus gas pipeline construction Jan. 2005

Brazil's federal energy company Petrobras (NYSE: PBR) is expected to start construction in January of a 420km gas pipeline linking its natural gas processing plant in Coari deep in the western Amazon forest to Manaus, the area's largest city, as spokesperson at federal energy company Petrobras told BNamericas, confirming press reports. The line will finally allow commercial usage of the natural gas from the 537 million barrels of oil equivalent reserves at the Urucu field in the Solimões basin. Investment in the project was estimated at US$350mn. The installation license from environmental authorities were granted at the end of May after the energy company's agreement to meet social and environmental pre-conditions. Most of the gas produced at Urucu is re-injected, with only part of it taken by gas pipeline to the Coari processing plant where the Petrobras produces liquefied petroleum gas. The gas is expected to reach Manaus in December 2006, where it will be used to generate power.