ANP approves PBGás to operate Pedras-de-Fogo city gate

Brazil's national oil regulator ANP has authorized Paraíba state natural gas distributor PBGás to operate the Pedras-de-Fogo city gate to expand gas supply in state capital city João Pessoa, PBGás said in a statement. This is the second city gate in the state that will allow the company to distribute extra gas from the 900km Malhas Nordeste gas pipeline being built by federal energy company Petrobras (NYSE: PBR), which is scheduled to start operations in 2007. PBGás is also building another two city gates in the state to supply the state's two largest towns. The Campina Grande city gate is scheduled to start operations in June and the Mamanguape city gate in October, the company said. PBGás currently sells gas to João Pessoa through its 60km pipeline, but has a 50mn-real plan to expand the gas network in the state. In 2004, the company sold some 254,000 cubic meters of gas a day. Company officials were not available to comment on the issue on Friday.