Nielmar de Oliveira
Reporter - Agência Brasil

Rio - Petrobras says that by 2010 it expects to be able to supply Brazil with 100 million cubic meters of natural gas per day, of which 65% would be its own domestic production and 35% imported from Bolívia. And that is the reason the company intends to invest US$ 16 bilhões in production, and transportation and distribution infrastruture in the near future.

According to Ildo Sauer, the director of Energy and Gas at Petrobras, the company has an aggressive investment plan that seeks to reduce the country's dependence on imported natural gas. "Out of the US$16 billion in total investments, some US$10 billion to US$12 billion will be invested in the Santos Basin oil fields. And when you consider that current Brazilian domestic consumption is between 40 and 42 million cubic meters per day, we are talking about an increase of over 100%," he explained.

However, Sauer added that unlike electricity, natural gas is one of a variety of fuels available on the market and future demand will be determined by market forces. "We see the presence of a demand for natural gas that should rise 10% per year between now and 2010. But at the same time it has to be remembered that natural gas competes with other fuels, such as gasoline and diesel," he declared.

At the moment, Brazil imports 24 to 30 million cubic meters of natural gas per day from Bolivia - approximately 50% of present domestic consumption.

Translation: Allen Bennett