El Paso wants stake in Urucu-Manuas pipeline

US energy group El Paso (NYSE: EP) wants to take a stake in the US$393mn, 417km gas pipeline project from the Urucu field in Amazonas state to state capital Manaus, business daily Valor Economico quoted El Paso's Brazil president Eduardo Karrer as saying. "If El Paso is committed to making a capital injection in the [Urucu-Manuas] undertaking, we could consider it," the paper quoted Ildo Sauer, gas division head at federal energy company Petrobras, as saying. Through El Paso Amazonas Energia and El Paso Rio Negro, El Paso has four plants serving the Manaus market, which could act as a demand anchor for the pipeline. Having a stake in the pipeline would integrate El Paso's energy operations in Manaus, duplicating the situation in Rondonia state capital Rondonia, where the company owns 50% of the TermoNorte thermoelectric plant and has a 25% stake in the US$350mn, 540km natural gas pipeline project that also runs from Urucu. Karrer reaffirmed El Paso's interest in Amazonas after resolving a conflict with federal power sector holding company Eletrobras over a new contract between El Paso Amazonas and Eletrobras-controlled distributor Manaus Energia.