Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil producer, won’t provide funding next year for a 1,300-kilometer (808-mile) ethanol pipeline it co-owns and will focus its investments on other priorities, according to an article by O Estado de S. Paulo.
Other project backers are seeking ways to make up for the funding shortfall, Alberto da Fonseca Guimaraes, chief executive officer of Logum Logistica SA, which is developing the project, said in the Sao Paulo-based newspaper today.
Petrobras, as the oil company is known, Raizen Energia SA, Grupo Copersucar and Odebrecht Transport SA each own 20 percent of the project that will link the states of Goais, Minas Gerais, Sao Paulo and Rio de Janeiro. Uniduto Logistica SA and Camargo Correa SA each hold 10 percent.
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