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Environmental defense
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Environmental defense

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Environmental Defense International Case Studies URUCU AND JURUA GAS AND OIL PROJECT, RONDONIA AND AMAZONAS (BRAZIL) Background The Urucu Gas and Oil Project expands oil and gas production of the Brazilian State oil company, Petrobras, in the Urucu oil field, an area of highly dense tropical forest, among the most remote and least ecologically disturbed of the Amazon basin. The main use of the gas and oil will be for additional electricity generation in the cities of Manaus and Porto Velho. Several less economically and environmentally costly alternatives have been proposed to meet the energy needs of these cities. The project consists of three pipelines, a thermoelectric power plant in Porto Velho, and a processing terminal in Coari. The total project cost is estimated at about $1.7 billion. Follow the Money The current stage of development of the project involves the construction of two extensions of the pipeline that will be financed by Banco Nacional de Desenvolvimento-BNDES (60%) and the Brazilian government (15%), while the remainder is to come from the private sector or international financial institutions. El Paso Energy International, based in Houston, Texas, is the majority owner of two power plants that will be served by these pipelines, and a partner in the Urucu-Porto Velho pipeline. The Japanese Export-Import Bank (JEXIM) committed about $64 million (7.

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Environmental Defense
International Case Studies
URUCU AND JURUA GAS AND OIL PROJECT, RONDONIA
AND AMAZONAS (BRAZIL)
Background
The Urucu Gas and Oil Project expands oil and gas production of the
Brazilian State oil company, Petrobras, in the Urucu oil field, an area of
highly dense tropical forest, among the most remote and least ecologically
disturbed of the Amazon basin. The main use of the gas and oil will be for
additional electricity generation in the cities of Manaus and Porto Velho.
Several less economically and environmentally costly alternatives have been
proposed to meet the energy needs of these cities. The project consists of
three pipelines, a thermoelectric power plant in Porto Velho, and a
processing terminal in Coari. The total project cost is estimated at about
$1.7 billion.
Follow the Money
The current stage of development of the project involves the construction of
two extensions of the pipeline that will be financed by Banco Nacional de
Desenvolvimento-BNDES (60%) and the Brazilian government (15%), while
the remainder is to come from the private sector or international financial
institutions. El Paso Energy International, based in Houston, Texas, is the
majority owner of two power plants that will be served by these pipelines,
and a partner in the Urucu-Porto Velho pipeline.
The Japanese Export-Import Bank (JEXIM) committed about $64 million (7.8
billion yen) in 1997 for the construction of the Urucu Natural Gas Processing
plant, increasing gas production from the Urucu field. The first pipeline, from
Urucu to Coari on the Amazon River, was financed and built by Petrobras.
Environmental Defense | 2001
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