ETHANOL USE

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WORLD BANK Brazils Ethanol Experience and
its Transferability Seminar
ETHANOL USE - LOGISTICS OF TRANSPORTING, STOCKING
AND BLENDING
Paulo de Tarso Costa ALCOHOL AND OXYGENATES
TRADING
WASHINGTON, APRIL 25, 2006
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It all began back in 1931
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Petrobras Institutional Role

• Not an Ethanol Producer (Oil Company)
• Biggest Ethanol Purchaser/Marketer in Brazil
• (as a gasohol blender)
• Adequate Tank Farms and Extensive
• Pipeline Network
• Important Vessel Owner/Charterer
• Human Resources and Technical Ability
•  

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Brazilian Model
Government action Stimulated Ethanol production
program in the 80s (financial support)
Petrobras participation Guaranteed Ethanol
purchase Technical studies (RD)
Transportation Blending Supply and Inventory
management
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Product Quality
Anhyrous Fuel Ethanol (minimum 99.6 vol pct
ethanol) National Petroleum Agency (ANP)
Brazilian Specifications Used for blending into
gasoline (E25 gasohol production)
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(No Transcript)
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LFFI Limpid and free from impurities
Colorless to yellowish if free from dye, whose
application is allowed to the maximum of 20 mg/l,
exception to blue color dye, which is restricted
to aviation gasoline.
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Product Quality
Hydrated Fuel Ethanol (minimum 95.1 vol pct
ethanol) National Petroleum Agency (ANP)
Brazilian Specifications Automobile fuel (Flex
Fuel vehicles)
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LFFI Limpid and free from impurities
Colorless to yellowish if free from dye, whose
application is allowed to the maximum of 20 mg/l,
exception to blue color dye, which is restricted
to aviation gasoline.
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Fuel consumption in Brazil (2004)
Ethanol Market-Share 7,0 8,7 ? 15,7
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Basic Logistics
33 per cent of market requires Ethanol
transpor-tation
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Distribution Network
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Main Pipeline Network

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Tietê Paraná Waterway

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Main Production Areas in Brazil
Export Terminals
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1
2
2
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Maceió
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55,000 dwt
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5
2
3
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Rio de Janeiro
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130,000 dwt
Paranaguá
40,000 dwt
Ref.Brazilian Government
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Logístics for Ethanol Export
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Ethanol From Plant to Loading Port
220 THOUSAND CU MT TANKAGE
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Petrobras and PDVSA
The Venezuela Project

• Introduce Ethanol in Venezuela
• Generate jobs
• Create market for future local industry
• Technology transfer of Petrobras 30 yr
  experience
• Latin America energy integration
• Reduce impact of high oil prices.

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Petrobras and PDVSA
Cooperative Work
Puerto La Cruz - 2005
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Quality Control on Shore
Plant Plant Tanks Analysis ANP specs guaranteed
Petrobras Receiving Refinery Receiving Trucks
tested for Density and Ethanol content. Farm
tanks analysis ANP specs certified
Pumping Operations Pipeline quality
controls Aspect and Color upon interface
passage, first 500, 1,000, 1,500, 2,000, 3,000
cubic meters and last 500 cubic meters
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• Aspect, Color, Hydrocarbon Content, Ethanol
• Content (INPM deg.) - first and last 500 m3
• Petrobras Export Refinery
• Farm tanks analysis ANP specs certified
• Independent Inspector Laboratory
• (Shore Tanks) ANP specs

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Quality Control on Vessel (Loading Port)
Independent Inspector Laboratory

• Vessel line sample
• Sampling of first 300 cubic meters loaded in each
  tank for quality approval
• Vessel individual tanks analysis
• Composite sampling ANP Specs

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Main Quality Characteristics of Product
LOADING PORT RIO DE JANEIRO

• REFINERY TANKS
• Ethanol content 99,7 INPM 99.6 INPM
• Hydrocarbon content 0.0 vol pct 0.0 vol pct

• VESSEL TANKS (individual tanks and ships tanks
• composite sample)
• Ethanol content 99.6 INPM
• Hydrocarbon content 0.0 vol pct

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PETROBRAS Terminals
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PARANAGUÁ
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MACEIÓ
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RIO DE JANEIRO
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SÃO SEBASTIÃO
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• paulo.de.tarso_at_petrobras.com.br
• Phone [phone]

Thank you !