Peter Howard Wertheim
OGJ Correspondent
RIO DE JANEIRO, June 4 -- Energy projects included in the strategic plan of Brazil's state-owned Petroleo Brasileiro SA (Petrobras) are underpinning the country's new "Program for Accelerated Growth" (PAC), an economic expansion program outlined recently by the country's President Luiz Inacio Lula da Silva that is expected to be the lynchpin of his second term in office.
About 65% of PAC's energy infrastructure projects involve oil and gas, mostly in the southeastern states. Of these, 183 are already in Petrobras's strategic plan, representing $86 billion in Brazil-based investment through 2010. These include:
-- The Rio de Janeiro State Petrochemical Complex (Comperj), a $10.5 billion project to process 150,000 b/d of heavy oil to produce diesel, ethane, propane, benzene, paraxylene, butadiene, polyethylene, polypropylene (PP), PET, PTA (primary material for making PET and polyester), ethylene glycol, and styrene. Construction is expected to begin in 2008.
-- The Abreue Lima refinery in Pernambuco state, a $5 billion joint venture with Venezuela's Petroleos de Venezuela SA that is expected to break ground this year and, once online in 2012, to process 200,000 b/d of heavy oil and produce diesel, coke, naphtha, liquid petroleum gas, and bunker fuel.
-- Two biofuels pipelines—an ethanol line from Goiás state to São Sebastião, São Paulo state port, and a line for both ethanol and biodiesel, to run from Cuiaba, Mato Grosso, to Paranagua in Paraná state.
-- The gas production anticipation plan (Plangás), a $12.5 billion investment to increase natural gas production to 40 million cu m by yearend 2008 and to 55 million cu m by yearend 2010.
-- New gas pipelines totaling 4,526 km.
-- A slate of 120 new biofuels projects over the next 4 years to raise the country's ethanol output to 23.3 billion l. by 2010 and biodiesel production to 3.3 billion l. The projects break down as follows: ethanol, 77 new plants producing about 40% more ethanol than current production; biodiesel, 46 new plants to quadruple current production by 2010; and H-bio, a blend of vegetable oil and diesel: Petrobras will invest $71 million in four refineries in Minas Gerais, São Paulo, Paraná, and Rio Grande do Sul states.
President Lula made it clear that the PAC will only become viable with private sector participation.
