Urucu-Coari-Manaus and Urucu-Coari Gas Pipeline Projects
(Rio de Janeiro, December 01, 2005). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that iits Executive Board has approved the contracting of a R$ 800 million bridge loan with the National Bank for Economic and Social Development (BNDES) , by Transportadora Urucu Manaus S/A, a special purpose company which is responsible for the Urucu-Coari-Manaus Gas Pipeline and the Urucu-Coari LPG Pipeline projects,
The strategically important Urucu-Coari-Manaus pipeline will carry 5.5 million cubic meters of natural gas per day, most of which will be consumed by thermoelectric plants converted from using fuel oil to natural gas due to the latters economic and environmental efficiencies. The remainder will go to industry, households and gas-powered vehicle fleets in Manaus and seven municipalities along the pipelines route.
The Urucu-Coari pipeline will be used to ship LPG produced in the Natural Gas Processing Units (UPGN), in Urucu, to Petrobras river terminal (TESOL) in Coari. Currently, LPG is being shipped by the existing stretch of the gas pipeline, between Urucu and Coari, which will return to its original function when the new Coari-Manaus stretch is concluded.
The investments related to the Project are considered in the recently approved Petrobras business plan for the period 2006-10; the initiativesreflect the companys strategy to develop and lead the Brazilian natural gas market by constructing a basic pipeline gridassuring the delivery of natural gas in an integrated fashion and monetization of its reserves.
The Financing Contract, representing an advance on long-term financing from the BNDES due for conclusion in mid-2006, will be signed on Monday, December 5, 2005 at the Banks headquarters.