ETHANOL USE -LOGISTICS OF TRANSPORTING,

STOCKING AND BLENDING

ETHANOL USE -LOGISTICS OF TRANSPORTING,

STOCKING AND BLENDING

WASHINGTON, APRIL 25, 2006

WORLD BANK

“Brazil’s Ethanol

Experience and its

Transferability” Seminar

Paulo de Tarso CostaALCOHOL AND OXYGENATES TRADING

Paulo de Tarso CostaALCOHOL AND OXYGENATES TRADING

It all began back in 1931…It all began back in 1931…It all began back in 1931…It all began back in 1931…

• 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

 

Petrobras Petrobras Institutional RoleInstitutional RolePetrobras Petrobras Institutional RoleInstitutional Role

Government action: Stimulated Ethanol production program in the 80’s (financial support)

Petrobras participation: Guaranteed Ethanol purchase Technical studies (R&D) Transportation Blending Supply and Inventory management

Brazilian ModelBrazilian ModelBrazilian ModelBrazilian Model

Anhyrous Fuel Ethanol (minimum 99.6 vol pct ethanol)

National Petroleum Agency (ANP) Brazilian Specifications

Used for blending into gasoline(E25 gasohol production)

Product QualityProduct QualityProduct QualityProduct Quality

Item Unit Value Method ASTM

ABNT/

NBR

Aspect - LFFI Visual Visual

Color - * Visual Visual

Total Acidity mg/l 30 max 9866 D1613

Elect. Conduc. microS/m 500 max 10547 D1125

Specific mass Kg/m3

@ 20C

791.5 max

5992 D4052

Alcohol deg. deg. INPM 99.3 min 5992 -

Hydrocarbons vol pct 3.0 max 13993 -

Copper mg/kg 0.07 max 10893 -

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.

LFFI: Limpid and free from impurities

Hydrated Fuel Ethanol (minimum 95.1 vol pct ethanol)

National Petroleum Agency (ANP) Brazilian Specifications

Automobile fuel (Flex Fuel vehicles)

Product QualityProduct QualityProduct QualityProduct Quality

Item Unit Value Method

ASTMABNT/

NBR

Aspect - LFFI Visual Visual

Color - * Visual Visual

Tot.Acidity mg/l 30 max 9866 D1613

Elect. Cond. microS/m 500 max 10547 D1125

Specific mass

Kg/m3

@ 20C

807.6-811.0

5992 D4052

Alcohol degree

deg. INPM 92.6-93.8 5992 -

Hydrocarbons

vol pct 3.0 max 13993 -

Others: Residue, pH, Chlorides, Sulfates, Iron, Sodium

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.

LFFI: Limpid and free from impurities

Diesel54,1%

Gasoline (E25)34,8%

Natural Gas4,1%

Hydrated Ethanol7,0%

References: ANP, Gás Brasil eandDatagro (2004)

Anhydrous Anhydrous EthanolEthanol

8,7% 8,7%

Ethanol Market-Share:Ethanol Market-Share:

7,0% + 8,7% 7,0% + 8,7% 15,7%15,7%

Fuel consumption in Brazil (2004)Fuel consumption in Brazil (2004)

Basic LogisticsBasic Logistics

33 per cent of market requiresEthanol transpor-tation

Distribution NetworkDistribution Network Distribution NetworkDistribution Network

Main Pipeline NetworkMain Pipeline Network

Conchas

Tietê Paraná WaterwayTietê Paraná Waterway

REPLAN

REPAR

Main Production Areas in Brazil

Ref.:Brazilian Government

61%3%

8%1%

2%5%

4%

5%

5%2%2%

1%1%

Center-South - 89% Production

North/Northeast - 11% Production

Maceió

55,000 dwt

130,000 dwtRio de Janeiro

Paranaguá

40,000 dwt

Export Export TerminalsTerminals

Export Export TerminalsTerminals

Ribeirão Preto

Export: 130,000 dwt

Export.: 300,000 dwt

ÁlcooldutoPaulínia/Taubaté190km

Álcoolduto

Guararema/S.Sebatião

90km

Terminal&ÁlcooldutoConchas/Paulínia

90km

ÁlcooldutoRibeirão Preto/Paulínia

200km

Logístics for Ethanol ExportLogístics for Ethanol ExportLogístics for Ethanol ExportLogístics for Ethanol Export

Rio de Janeiro(REFINERY)150 km 370 kmTaubatéPaulínia

(REFINERY)

Ilha D’ÁguaMarine Terminal

GuararemaTerminal

20,000 m3

15

km

1.2 million Kl/Year

190 km

Puerto La Cruz

20

0

km

Ribeirão PretoCollection

Center

90 k

m

99.6 wt%

99.7 wt%

99.8 wt%

Average 750 km

Ethanol From Plant to Loading Port Ethanol From Plant to Loading Port Ethanol From Plant to Loading Port Ethanol From Plant to Loading Port

220 THOUSAND CU MT TANKAGE220 THOUSAND CU MT TANKAGE

The Venezuela ProjectThe 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.

Petrobras and PDVSAPetrobras and PDVSA

Cooperative WorkCooperative Work

Petrobras and PDVSAPetrobras and PDVSA

Puerto La Cruz - 2005

Quality Control on Shore:Quality Control on Shore:Quality Control on Shore:Quality Control on Shore:

Plant Plant Tanks Analysis: ANP specs guaranteed

Petrobras Receiving RefineryReceiving Trucks tested for Density and Ethanol content.Farm tanks analysis: ANP specs certified

Pumping OperationsPipeline quality controlsAspect and Color – upon interface passage, first 500, 1,000, 1,500, 2,000, 3,000 cubic meters and last 500 cubic meters

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

Quality Control on Vessel (Loading Port): Quality Control on Vessel (Loading Port): Quality Control on Vessel (Loading Port): Quality Control on Vessel (Loading Port):

Vessel line sample

Sampling of first 300 cubic meters loaded in each tank for quality approval

Vessel individual tanks analysis Composite sampling ANP Specs

Independent Inspector Laboratory

Main Quality Characteristics of Main Quality Characteristics of ProductProductMain Quality Characteristics of Main Quality Characteristics of ProductProduct

LOADING PORT – RIO DE JANEIRO

REFINERY TANKSEthanol content 99,7 INPM 99.6 INPMHydrocarbon content 0.0 vol pct 0.0 vol pct

VESSEL TANKS (individual tanks and ship’s tanks composite sample)

Ethanol content 99.6 INPMHydrocarbon content 0.0 vol pct

PETROBRASPETROBRASTerminalsTerminals

PETROBRASPETROBRASTerminalsTerminals

PARANAGUÁ

MACEIÓ

RIO DE JANEIRO

SÃO SEBASTIÃO

Thank you !Thank you !paulo.de.tarso@petrobras.com.brpaulo.de.tarso@petrobras.com.br

Phone 55 21 3224-3236Phone 55 21 3224-3236