South America's Largest Gas Infrastructure Project Officially Opened

abarrelfull wrote on 16 May 2012 10:44
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9 February 1999

President Fernando Henrique Cardoso of Brazil and President Hugo Banzer Suarz of Bolivia today inaugurated the US$2 billion Bolivia to Brazil gas pipeline developed by Petrobras with the BG, El Paso and BHP Power international consortium, BTB. The ceremony took place in Corumb, Brazil.

Following the ceremony, BG plc Executive Director responsible for International Downstream, Stephen Brandon said: "This event is a milestone for BG and its partners, and further demonstrates our commitment to expanding the gas industry in Brazil. The project is an excellent example of collaborative achievement where two governments, two state companies and private international investors have worked together to deliver the largest infrastructure project in South America."

First commercial supplies are scheduled to reach Sao Paulo in March, bringing much needed natural gas to the Brazilian market. Completion of the second stage of the pipeline, taking gas to Porto Alegre in southern Brazil, is expected in the fourth quarter of 1999. Financing of the project was completed in January 1999.

BG owns one third of BBPP Holdings Limited, an international consortium which, under the name BTB, was selected by Petrobras as its partner to develop the 3,200 kilometre pipeline. The pipeline has a design capacity of 30 million cubic metres of gas per day.

The development of the pipeline will facilitate the monetisation of BG's recently discovered gas reserves in Bolivia, and is the first investment in implementing the company's gas chain strategy in Bolivia and Brazil. BG's future plans include downstream projects in Brazil and connecting the pipeline to an extension of the proposed Argentina to Uruguay pipeline which BG, as part of another international consortium, is developing.

Notes to Editors

Argentina to Uruguay pipeline - BG is joint leader of an international consortium selected by the government of Uruguay to construct and operate a 215 kilometre 'Southern Cross' natural gas pipeline from Buenos Aires to Montevideo in southern Uruguay. It is planned to extend it through Uruguay to meet the Bolivia/Brazil pipeline in Porto Alegre.

Gas discovery in Bolivia - In November 1998 BG and its partners announced the successful testing of the Margarita 1-X onshore exploration well in southern Bolivia.

• South America's Largest Gas Infrastructure Project Officially Opened

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