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Petrobras in $5bn midstream pledge to boost gas supply

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Staff writer ▼ | June 24, 2014
Brazil's federal energy major Petrobras has outlined plans to invest $5bn over the next five years to transport natural gas from its pre-salt fields to the country's southeast coast.
Petrobras
PetrobrasBrazil's federal energy major Petrobras has outlined plans to invest $5bn over the next five years to transport natural gas from its pre-salt fields to the country's southeast coast.


In a statement on its blog, Petrobras said the amount was 50% of its budget for the gas and electric power segment. According to the company, the sum includes spending on new pipelines and gas processing plants.

Natural gas from Brazil's ultra-deepwater fields is seen as vital to meeting the country's rising fuel demand from thermoelectric power plants. Brazil's pre-salt fields, deep under the Atlantic, hold more than 35Bboe, according to national hydrocarbons regulator ANP.

Despite forecasted investments in offshore midstream projects, Brazilian consultancy Gas Energy warned threadbare onshore infrastructure remained an obstacle to natural gas expansion.

"It's obvious that Brazil is going to need a lot more investments in infrastructure," Gas Energy's CEO Marco Tavares was quoted as saying by O Globo newspaper. "It's the model that is impeding investments, because Petrobras is involved from generation to distribution, which inhibits private firms."


 

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