Petrobras has closed a funding deal worth R$2.49 billion, granted by the National Economic and Social Development Bank (BNDES), for the Transportadora Urucu-Manaus S.A. special purpose company (SPC), in charge of building the 383-kilometer-long, 20-inch diameter natural gas transportation pipeline to connect Coari to Manaus, and of building distribution branches to supply seven municipalities located along the gas pipeline's course. The funds will also be used to build the 279-kilometer-long, 10-inch nominal diameter liquefied petroleum gas (LPG) pipeline that will connect the Arara Pole, in Urucu, to the Solimões Terminal, in Coari in the state of Amazonas.
The natural gas will be used initially for thermoelectric power generation in the city of Manaus, substituting for the fuel oil generators that are currently used for this purpose. Later, it will also supply the region's industrial, vehicle, commercial and residential sectors.
The gas pipeline will have two delivery points in Manaus, seven distribution branches totaling 126 kilometers in length, to deliver gas to municipalities located near the gas pipeline, and two intermediary gas-compression stations. The project also foresees the re-adaptation of an existing 18-inch nominal diameter pipeline between Urucu and Coari, which will be interconnected to the 20-inch one, allowing for natural gas production outflow.
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