Petrobras Weighs Building Ethanol Pipeline

State-run oil giant Petroleo Brasileiro SA, or Petrobras, is considering the construction of a US$226 million (euro186 million) ethanol pipeline to meet a growing global demand of the sugarcane alcohol fuel.

Petrobras Chief Executive Sergio Gabrielli and Goias state Gov. Marconi Perillo agreed Thursday to study a pipeline capable of transporting 4 billion liters (1 billion gallons) of ethanol a year.

It would run from the central state of Goias to a refinery in Paulinia, near Sao Paulo, through Brazil’s main producing centers of sugar cane and ethanol.

Gabrielli said Petrobras would be pioneering a new area of alternative fuel transportation.

AP