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Environmental Defense International Case Studies URUCU AND JURUA GAS AND OIL PROJECT, RONDONIA AND AMAZONAS (BRAZIL) Background The Urucu Gas and Oil Project expands oil and gas production of the Brazilian State oil company, Petrobras, in the Urucu oil field, an area of highly dense tropical forest, among the most remote and least ecologically disturbed of the Amazon basin. The main use of the gas and oil will be for additional electricity generation in the cities of Manaus and Porto Velho. Several less economically and environmentally costly alternatives have been proposed to meet the energy needs of these cities. The project consists of three pipelines, a thermoelectric power plant in Porto Velho, and a processing terminal in Coari. The total project cost is estimated at about $1.7 billion. Follow the Money The current stage of development of the project involves the construction of two extensions of the pipeline that will be financed by Banco Nacional de Desenvolvimento-BNDES (60%) and the Brazilian government (15%), while the remainder is to come from the private sector or international financial institutions. El Paso Energy International, based in Houston, Texas, is the majority owner of two power plants that will be served by these pipelines, and a partner in the Urucu-Porto Velho pipeline. The Japanese Export-Import Bank (JEXIM) committed about $64 million (7.

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Publié par

jjggi

Langue

Français

Environmental Defense

International Case Studies

URUCU AND JURUA GAS AND OIL PROJECT, RONDONIA

AND AMAZONAS (BRAZIL)

Background

The Urucu Gas and Oil Project expands oil and gas production of the

Brazilian State oil company, Petrobras, in the Urucu oil field, an area of

highly dense tropical forest, among the most remote and least ecologically

disturbed of the Amazon basin. The main use of the gas and oil will be for

additional electricity generation in the cities of Manaus and Porto Velho.

Several less economically and environmentally costly alternatives have been

proposed to meet the energy needs of these cities. The project consists of

three pipelines, a thermoelectric power plant in Porto Velho, and a

processing terminal in Coari. The total project cost is estimated at about

$1.7 billion.

Follow the Money

The current stage of development of the project involves the construction of

two extensions of the pipeline that will be financed by Banco Nacional de

Desenvolvimento-BNDES (60%) and the Brazilian government (15%), while

the remainder is to come from the private sector or international financial

institutions. El Paso Energy International, based in Houston, Texas, is the

majority owner of two power plants that will be served by these pipelines,

and a partner in the Urucu-Porto Velho pipeline.

The Japanese Export-Import Bank (JEXIM) committed about $64 million (7.8

billion yen) in 1997 for the construction of the Urucu Natural Gas Processing

plant, increasing gas production from the Urucu field. The first pipeline, from

Urucu to Coari on the Amazon River, was financed and built by Petrobras.

Environmental Defense | 2001

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