Comgas sees many companies to shift to natural gas

A survey made by the Sao Paulo state gas distribution company Comgas showed that above 200 companies in the state companies are willing to shift energy sources from fuel oil to natural gas that started to be pumped in the gas pipeline Bolivia - Brasil. In addition, there are several thermal power plant projects, one of them, an association of Petrobras, Marubeni, and Sithe Energies to invest $ 600 mm in a plant at Cubatao, Sao Paulo state, to be completed in 2002 with a capacity to generate 900 MW.

The Bolivia - Brasil pipeline will run a capacity of 8 mm cmpd, that according to the survey from Comgas, will be not enough to supply the potential demand for 14.5 mm cmpd up to year 2000. The companies identified by Comgas should demand 5 mm cmpd, but need a 850 km expansion in the pipelines distribution network. Over the first stage Sao Paulo is to receive 4 mm cm, half of which already negotiated with the Empresa Metropolitana de Aguas e Energia (500,000 cmpd), Pirelli (500,000 cmpd) and Rolls Royce (1 mm cmpd).