Brazil stimulates construction of natural gas-fired power plants

Oct 11, 1999 02:00 AM

Natural gas distribution companies said that the Brazilian government's recent procedures to stimulate the construction of natural gas-fired thermoelectric plants, like the energy purchase agreements to be signed by Eletrobras and the credits to be given by BNDES, will certainly benefit the sector. However, those distributors believe that the government should have established a lower price for the supply of gas to the thermoelectric plants.
According to the government's decision, the plants located in the middle and in the south-eastern regions will pay $ 2.26 per 1 mm of BTU's concerning 20-year contracts. The plants located in the north-eastern region of the country will pay $ 1.94 over the first 5 years and then $ 2.26 over the remaining 15 years.

Source: Sabi via Newspage
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