China Exim Bank to Invest Up to US$1.4bn in Gasene

The China Exim Bank plans to invest US$1.3bn-1.4bn in the construction of the 1,000km Gasene gas pipeline link between Brazil's northeastern and southeastern regions, Brazil's energy and mines minister Dilma Rousseff told BNamericas on the sidelines of a conference in La Jolla, California.

O Globo news service reported in April that federal energy company Petrobras (NYSE: PBR) had signed a US$1.2bn financing contract with the Chinese bank for the pipeline. The link is considered important to allow expansion of gas supply from the Campos basin into the northeast region.

According to a previous BNamericas report, Petrobras is also concluding talks with Chinese oil company Sinopec for the construction of the pipeline, which would link the southeastern state of Espírito Santo to the northeastern state of Bahia. Brazil's government is developing several gas pipeline projects in the country to expand domestic gas supplies, particularly for thermoelectric power generation in the northeast. Gas supplies will come from recent offshore domestic discoveries combined with imports from Bolivia and Argentina, Rousseff said.

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