Authorities say 5,000km more gas pipelines needed

Brazil must expand its natural gas distribution network by 5,000km in order to develop the residential and industrial markets, Gazeta Mercantil quoted oil, natural gas and renewable energy undersecretary, Maria das Gracas Silva Foster, as saying. Important projects include the Malhas program, which will connect different sub-regions. One priority is a two-year program to link the networks of Bahia state and the southeastern region, she said. Meanwhile, lobbyists for gas-fired thermoelectricity generation want a minimum dispatch to be included in the new energy model being drawn up by the energy ministry. "Operating at 40% of installed capacity, gas-fired thermoelectric plants could generate MWh at US$12 instead of US$40 that combustible oil-fired plants do," Joao Carlos de Luca, president of oil and gas institute IBP, was quoted as saying. Foster neither confirmed nor denied that minimum dispatch would be included in the new model. The IBC aims to increase gas consumption in the country to 76 million cubic meters a day (mcm/d) in the next five years from today's 42mcm/d.