Nigerian Newsday

In line with the Federal governments resolve to introduce ethanol in fuel, the Nigerian National Petroleum Corperation (NNPC) has concluded negotiations on ethanol supply into the country with Brazil’s state-owned oil and gas company, Petrobas.

Under the agreement, Petrobas, will export the first shipment of anhydrous fuel alcohol to Nigeria in the next few months.

The negotiations, were sequel to a memorandum of understanding which Petrobas and NNPC signed in August last year, aimed at implementing the programme to add 10 percent ethanol to all gasoline traded in Nigeria.

Petrobas proposal included product sales, technical support for mixing ethanol, handling procedures and NNPC employee training.

The Brazilian Company had also assured that in the next few weeks, the first 20-million litre shipment would be loaded at the Iha D’ Agua terminal, in Rio de Janerio, and unloaded in Lagos.

The oil and gas giant, however stated that currently, it has no plans to invest in the construction of ethanol production plants in Nigeria, or even in facilities to store, handle or mix ethanol to gasoline in the country.

Petrobas instead stressed the important role played by Brazil in the global alternative fuel market and its own role as a Brazilian industry booster, exporting products and service to new markets.

Meanwhile, Petrobas president, Jose’ Sergio Gabrielli de Adevedo, who was among the participants at the just concluded Organization of American States 4th Private Sector Forum in Panama city, used the forum to highlight the increasing use of renewable energies, emphasizing biofuels and particularly, ethanol.

The Untied Stated is expected to substitute 20 percent of its gasoline for ethanol by 2017, while Japan would add 3 percent ethanol to its gasoline by 2010. Petrobas is already holding ethanol exports negotiations with these two countries.