Petrobras to Finish Cabiunas-Vitoria Pipeline Next October

Brazil's federal energy company Petrobras plans to start operations of the 300km, US$500mn Cabiunas-Vitoria natural gas pipeline in October 2007, the company said in a statement.

President Luiz Inacio Lula da Silva inaugurated the construction on June 10.

Gascav, as the pipeline is called, is the second longest stretch of the 1,370km Gasene gas pipeline that will link the southeastern region to the northeastern region by 2008. Gascav will have capacity to carry 20 million cubic meters a day, the company said.

Petrobras hired Chinese company Sinopec to build the pipeline.

"This pipeline has been under discussion for many years and is for some people is the integration gas pipeline," Petrobras CEO Sergio Gabrielli said. "[Gasene] will allow us to manage production and transport of the fuel as we need."

Construction of the first 130km Vitoria-Cacimbas stretch of the Gasene is expected to be concluded in December 2006.

Construction of the longest stretch linking Cacimbas to the town of Catu is expected to start in November 2006 and to be concluded in November 2007.

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