An investment of US$3 bln has been planned by a consortium of six towards building of a pipeline to transport ethanol from Riberao Preto to local markets and for export. About 20 million cubic meters pa will be carried by the pipeline by 2020. Work is set to commence on the pipeline in the city of Riberao Preto, the heart of the sugarcane industry in the interior of Sao Paulo state.
The consortium of six companies including Petrobras will set up a new company to handle a network for distribution and storage of ethanol and other liquids. The new company will be established with an initial capital of 100 million reais (US$58 mln) for the purpose of setting up the network. Petrobras; Cosan SA Industria e Comercio SA, Copersucar SA, and Odebrecht Transport Participacoes SA will each hold 20% stake in the new company, while Camargo Correa Oleo e Gas SA and Uniduto Logistica SA will hold 10%.