Brazil Petrobras Establishes Natural Gas Joint Venture


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Brazil's Petrobras has signed a deal with Praxair Inc. subsidiary White Martins to form a natural gas company. Petroleo Brasileiro, as Petrobras is formally known, will have a 40% stake in the new company, to be based in Sao Paulo state. White Martins will have a controlling 60% stake in the venture.

Under the terms of the agreement, White Martins will be responsible for building the new $38 million factory, scheduled to be completed in the second half of 2005. Petrobras, which discovered massive reserves of natural gas off the coast of Sao Paulo last year, will supply the gas. The factory will have the capacity to liquefy 380,000 m3/d. It will seek to serve industrial clients in the states of Sao Paulo, Parana, Goias and Brasilia – areas currently without access to gas pipelines.

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