Interest in Bolivia-Brazil Gas Pipeline
Total Fina Elf.
22 June 2000
TOTALFINAELF SIGNS AGREEMENT TO ACQUIRE INTEREST IN BOLIVIA-BRAZIL GAS PIPELINE
Paris, June 22, 2000 - TotalFinaElf has signed an agreement with the Australian
company Broken Hill Proprietary Company Ltd (BHP) to acquire its 33.3% interest
in BBPP Holdings Ltda., which holds a 29% interest in the Brazilian company
Transportadora Brasileira Gasoduto Bolivia-Brasil S.A., owner and operator of
the Brazilian section of the Brazil-Bolivia gas pipeline. TotalFinaElf will
therefore hold a 9.7% interest in this pipeline. Finalization of the
transaction is expected before end of June 2000.
The 3,000-kilometer gas pipeline covers a distance of 500 kilometers in Bolivia
and 2,500 kilometers in Brazil. It supplies markets experiencing intensive
development in south and southwest Brazil, starting from the Bolivian gas
reserves where the Group has made important discoveries during the past two
years.
The Bolivia-Brazil gas pipeline was built in two stages. The first section,
linking Santa Cruz in Bolivia to Sao Paulo, began service in July 1999. The
second section, from Sao Paulo to Porto Alegre was completed last month.
Overall cost was $2 billion; $1.6 billion accounting for the Brazilian section.
This represents one of the largest infrastructure projects carried out in Latin
America, allowing for the development of the natural gas market in Brazil.
Forward-looking analyses show that the share of natural gas in total energy
consumption in Brazil should pass from 2% to more than 10% by the end of the
decade.
The transmission capacity of the pipeline, which is already entirely contracted,
should rapidly attain 30 million cubic meters of gas per day and could be
increased to a higher capacity.
This transaction follows an agreement with the Canadian company Transcanada
Pipeline announced on May 31, to acquire its gas transmission assets in
Argentina, Chile and Southern Brazil. The new agreement marks an important step
in TotalFinaElf's strategy to develop its downstream gas activities in the gas
chain in a regions where it holds large gas reserves and is already an important
producer.
Media Contacts:
Thomas Saunders 33.1.47.44.42.30
Catheriene Enck 33.1.47.44.37.76
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