ANP Prepares Process for B2B Pipeline Expansion

Brazil's national hydrocarbons regulator ANP plans to invite companies to submit plans for the expansion of transport capacity on the Brazil-Bolivia natural gas pipeline (B2B) by the end of the year, an ANP spokesperson told BNamericas, confirming local press reports.

ANP studies have shown that the extra gas will be needed to guarantee supplies in 3-4 years because of expansion in domestic demand, the spokesperson said, without giving a detailed schedule for the process.

The B2B is a 3,000km pipeline linking natural gas-producing regions in Bolivia to southern Brazil, crossing Brazil's industrial hub state of São Paulo. The pipeline is operated by TBG, a joint venture led by federal energy company Petrobras (NYSE: PBR) with a 51% controlling stake.

Other shareholders are UK gas company BG Group with 29%, Bolivian gas transport company Transredes with 17%, Anglo-Dutch major Shell with 4% and US company Prisma Energy with 4%.

Petrobras has already announced its interest in expanding the gas pipeline. If this interest is not confirmed, ANP could approve expansion plans by other companies, the spokesperson said.

The pipeline has capacity to transport 30 million cubic meters of gas a day (Mm3/d), although in late August it only transported around 27 Mm3/d, according to Bolivian press reports.

About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.

Click here for a Free two week trial to our Latin America Oil & Gas information service.