Logistics for the Insertion of Fuel EthanolProduced in Brazil into the Global Market
SUMMARY
• Introducing PETROBRAS TRANSPORTE – TRANSPETRO
• Installations / Logistics - PETROBRAS/TRANSPETRO
• Fuel Ethanol
• Fuel Ethanol Logistics - PETROBRAS Project
Who is Transpetro?A 100% PETROBRAS Company
TRANSPETRO was constituted by Law 9478 (August 06th, 1997)
“PETROBRAS will have to constitute a subsidiarywith the specific assignment of constructing andoperating its pipelines, terminals and vessels in
order to transport crude oil, its products andnatural gas. It is allowed to this subsidiary to
associate with other companies.”
Petrobras Transporte -TRANSPETRO
PETROBRAS TRANSPORTE S.A.TRANSPETRO
• Products Handled:– Crude Oil, Oil Products, Fuel Ethanol, Chemicals and Natural Gas
• Tank Farm Terminals: 20
• Marine Terminals: 24
• Pipeline: about 10,000 km (7,000 Km Liquid / 3,000 Km Gas)
• Tankage: about 10 million m3
• Tanker Fleet : 51
• Employees: 2.455
TANKER FLEET
51 TANKERS
TANKER FLEET
51 Tankers ~ 2.5 million dwt
CRUDE OIL ! 84 150.000 2000/2001 - Abroad2 134.000 1979/1981 - Brasil2 91.000 1985 - Brasil
CRUDE & HEAVY PRODUCTS ! 101 55.000 1996 - Brasil1 45.000 1996 - Brasil2 30.500 1989/1990 - Brasil3 19.000 1986 - Brasil3 19.000 1989/1990 - Brasil
HEAVY & LIGHT PRODUCTS ! 7 3 66.000 1989/1990 - Brasil2 55.000 1991/1993 - Brasil2 44.000 1993/1994 – Brasil
LIGHT PRODUCTS ! 18 3 44.500 1993/1996 - Brasil2 44.000 1993/1996 - Brasil2 44.500 1996/1997 - Brasil3 29.000 1991/1993 - Brasil8 18.000 1980/1983 - Brasil
LPG ! 6 3 8.000 kl 1987 - Abroad3 6.000 kl 1981/1982 - Abroad
FSO ! 21 131.000 1977 - Brasil1 29.000 1975 - Brasil
Nr. dwt BUILDING DATA Nr. dwt BUILDING DATA
Terminals
24 Marine Terminals 24 Marine Terminals 20 Tank Farm Terminals20 Tank Farm Terminals
592 Storage Tanks592 Storage Tanks10,180,000 m310,180,000 m3
Pipelines
PipelinesPipelines10,000 km10,000 km
TRANSPETRO IN BRAZIL – OVERVIEW
Ethanol
1931
1940
1974
1928
Ethanol – BRAZIL - History
ETHANOL SUPPLY CHAIN
Production
Sugarcane
Mill / Distillery
Production
ETHANOL SUPPLY CHAIN
Raw Material Supply
ETHANOL SUPPLY CHAIN
Mill
ROAD
RETAILMARKET
DISTILLERY
DISTRIBUTION TERMINALS
PRIMARYTERMINALS
ROAD
ROADTRAIN
PIPELINE
ETHANOL SUPPLY CHAINDistribution
Road Transportation
ETHANOL SUPPLY CHAIN
Primary Terminal
ETHANOL SUPPLY CHAIN
Truck Tank Loading
ETHANOL SUPPLY CHAIN
Distribution Terminal
ETHANOL SUPPLY CHAIN
Rail Shipment
ETHANOL SUPPLY CHAIN
Blending System
GasolineGasoline(75%)(75%)
AnhydrousAnhydrousEthanolEthanol(25%)(25%)
ETHANOL SUPPLY CHAIN
FLEX-2006
Flex Fuel Vehicles (FFV)
At this moment: 7 brands and 60 models.
ParatiParati
FoxFox
SaveiroSaveiro
PolOPolO
KombiKombi
CROSSFOXCROSSFOXGolGol
PolOPolO SedanSedan Volkswagen
17 Models
GolfGolf
0
500
1000
1500
2000
2500
3000
1990 1994 1998 2002 2006 2010 2014gasoline ethanol flex diesel
Thousands of Cars
Trend of Car Sales
Ethanol Growth Trend
FFV Market Share
0
20
40
60
80
100
jan/
03
mar
/03
may
/03
jul/0
3
sep/
03
nov/
03
jan/
04
mar
/04
may
/04
jul/0
4
sep/
04
nov/
04
jan/
05
mar
/05
may
/05
jul/0
5
sep/
05
nov/
05
jan/
06
Gasoline Flex Fuel Ethanol
January 2003 to February 2006FF
V In
trod
ucin
g
76,6%
19,3%
OCT.- 2006
77,1%
8000
10000
12000
14000
16000
18000
20000
22000
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Gasoline Ethanol
Thousands m3
5,7Ethanol 1,4Gasoline
Growth rate in the Domestic Market2004/2015 (% / year )
Ethanol Growth Trend
Ethanol Fuel in Other Countries
Countries Already Using:– Brazil (E-25 and E-100); – USA (E-10 and E-85) – Sweden (E-5 and E-85);– Thailand (E-10);– Australia (E-10);– Canada (E-10);– China (E-10);– Colombia (E-10); – Peru (E-10); – South Africa (E-5 and E-10);– Paraguay (E-7);– India (E-5);
Countries Studying :– Argentina;– Cuba;– England;– France;– Germany;– Japan;– New Zeeland;– Philippines;– Russia;– Swiss;– Uruguay.
Ethanol: Strategic Motivation - Brazil
• Growth prospects for the use of ethanol as a fuel, on worldwide scale, for socioeconomic, strategic and environmental reasons.
• High Brazilian potential to be an ethanol exporter.
• PETROBRAS/TRANSPETRO excellence in the movement of ethanol in Brazil, due to its experience with Proalcool (more than 30 years ).
• Availability of logistics infrastructure using pipelines, marine terminals and large tankers, allowing greater competitiveness for its export.
Ethanol: General Comments
• Increase of ethanol production in Brazil – Above the local market demand: NO
• Flex-fuel Technology / Gasoline x Ethanol / Brazil : YES
• Excess of gasoline in Brazil : YES
• Increase of ethanol production in the U.S. -> Lack of corn in the international market : YES
• International demand pushed by the international legislation : YES / NO
• High volume of Brazilian export by 2010 : NO
PETROBRAS
•PETROBRAS/TRANSPETRO has extensive experience in pipelines, marine terminals and handling fuel products, including fuel ethanol.
•Our company has been handling ethanol for the last 30 years. No other company in the world has such a profile.
•We have already solved technical problems as: Water, Corrosion, Interfaces, Quality Control, etc.
Fuel Ethanol Exportation
• Large Marine Terminals ! More Competitiveness
• Large Storage Capacity ! Regular Supplying
• Pipelines Transportation ! Reduce Logistic Costs
• Large Ethanol Vessels (300.000 dwt) ! Ethanol Exports
• Marine Terminals Worldwide ! Ethanol Exports
PETROBRASPETROBRASINFRASTRUCTUREINFRASTRUCTURE
Brazil Fuel Ethanol Production:Present Situation
Regions: Center plus Southern (90% Vol – Production)Regions: Northern plus Northeastern (10% Vol – Production)
62%3%
8%
1%2%
5%4%
5%
4%2%2%
1%1%
Maceió55.000 dwt
130.000 dwtIlha D’Água
Paranaguá 40.000 dwt
Santos
Vitória
Temporary with small vessels – Future only for Chemical ethanol
São Sebastião300.000 dwt
Brazil Fuel Ethanol Production:Future Situation
Regions: Center plus Southern (89% Vol – Production)Regions: Northern plus Northeastern (11% Vol – Production)Source: Única / UDOP / Datagro – Crop 02/03
62%
3%
8%
1%2%
5%4%
5%4%
2%2%
1%1%
Maceió55.000 dwt
130.000 dwtIlha D’Água
Paranaguá40.000 dwt
Santos
Vitória
Temporary with small vessels – Future only for Chemical ethanol
São Sebastião300.000 dwt
ProductionIncrease
P < 1 M. m³/year1 < P < 2 M. m³/year2 < P < 3 M. m³/yearP > 3 M. m³/year
(*) average for the next 10 years
Productive Sites and Logistics Planning(Waterways and Pipelines)
pipelinewaterway
São Sebastião
Terminal
Ilha Dagua
Terminal
PAULINIA
HUB
Ethanol PETROBRAS Project
CenterBrazil
Paulínia
São SebastiãoSão Paulo
GuararemaIlha Dagua
Rio de Janeiro
WaterwayTiete-Parana
153 km 372 km
Existing Pipelines
New PipelinesNew Pipelines
Ethanol PETROBRAS Project
10”10”10”
16”16”16”
8”8”8” 16”16”16”
Ethanol Exportation Corridor
• 5 phases:– Phase 0 : Existing pipeline facilities - Revamping– Phase A: Pipeline from Paulinia to Guararema Terminal– Phase B: Pipeline linking waterway to PETROBRAS pipeline system– Phase C: Pipeline from Uberaba to Paulínea– Phase D: Pipelines from Senador Candedo to Uberaba and from
Guararema to São Sebastião Terminal.
INVESTIMENTS: US$ 1,2 Billion
PETROBRAS Project
Rio de Janeiro(Refinery )153 km 372 km
Present Pipeline System
PaulíniaRefinery
Ilha D’ÁguaTerminal
GuararemaTerminal
15 k
m
Existing facilities revampingExisting facilities revamping
Ethanol Exportation Corridor
Existing Facilities
3.600.000
1.440.000
600.000
Capacity m³/year
New Pumps at Replan+ 1 adapted tank at Guararema and
+ 1 adapted tank at TECAM
Pump and +1 adapted tank at Guararema
By-pass Guararema
conditions
0-C
0-B
0-A
PHASE
Ethanol Plant
TECAM
REPLAN
Guararema
Existing facilities revampingExisting facilities revamping
RP-18
REDUC
OSRIO 16”TABG
PP / PS
Rib. Preto
3.600.000
1.440.000600.000
Capacity m³/year
New Pumps at Replan+ 1 adapted tank at
Guararema and + 1 adapted tank at TECAM
Pump and +1 adapted tank at Guararema
By-pass Guararema
Conditions
0-C
0-B0-A
Phase
12”
Phase 0A
Vessels up to 100.000 m³
Phase 0B
ExistingPumps
New Pumps
Phase 0C
Phase 0C
Phase 0C
“REPLAN - Ilha D’Água”PIPELINE:
CAPACITY ! 4 million m3/year
A
Ethanol Exportation Corridors
New PipelineA
TIETÊ WATERWAY PIPELINE:
CAPACITY ! 4 million m3/year
B
Ethanol Exportation Corridors
New PipelineB
BARRA BONITA - 1973
IBITINGA - 1986
BARIRI - 1968
PROMISSÃO - 1986
CANAL LOCK WATERWAY TIETÊ-PARANÁ
NOVA AVANHANDAVA - 1991
JUPIÁ - 1998
TRÊS IRMÃOS - 1994
PORTO PRIMAVERA - 1999
CANAL LOCK WATERWAY TIETÊ-PARANÁ
PEREIRA BARRETO
BARIRI (M. Esq.)
IGARAÇU DO TIETÊ
BARIRI (Margem Direita)P. BARRETO
ARTIFICIAL CANALS WATERWAY TIETÊ-PARANÁ
SARTCO-ADM DIAMANTE-COSAN
QUINTELLA EPN-TORQUE
BARGES
“UBERABA-RIBEIRÃO PRETO - REPLAN” PIPELINE:
CAPACITY ! 6 million m3/year
C
Ethanol Exportation Corridors
New PipelineC
Ethanol Exportation Corridors
New Pipeline
New Pipeline
D
D
“SEN.CANEDO - UBERABA” and“GUARAREMA – SÃO SEBASTIÃO”
PIPELINES:
CAPACITY ! 2 - 4 million m3/year
D
Ethanol Exportation Corridors
• Transport Capacity
– Short term : 1,2 million m³/ year
– As from 2010: 4 - 5 million m³/ year
– After 2012: 8 million m³/ year
Logistics INFRASTRUTURE
SOUTH REGION
:: State of Paraná ::
Paranaguá Marine Terminal
BRAZIL
Fuel Ethanol Exporting:Paranaguá Marine Terminal
REPAR(Refinery)
PARANAGUÁ(Terminal)
2008: +30.000 m3
EXPORTING CAPACITY:
2006: 360,000 m3/year2008: 720,000 m3/year
35.000 / 40.000 dwt
2008: +10.000 m3
Pipeline(100km)
Logistics INFRASTRUTURE
NORTHEASTERN REGION
:: State of Alagoas ::
Maceió Marine TerminalBRAZIL
Fuel Ethanol Exporting:Maceió Marine Terminal
55.000 dwt
2006: 30.000 m³2008: 40.000 m³
ETHANOL CAPACITY:720,000 m3/year
Fuel Ethanol Exportation CapacityPETROBRAS PROJECT
" 2007 ! 2 million m3 / year
# Southeastern Region ! 1.2 million m3 / year
# Southern Region ! 0.4 million m3 / year# Northeastern ! 0.4 million m3 / year
" 2009/2011 ! 5 million m3 / year
" 2012 ! 12 million m3 / year
Competitive production
Global Market
Efficient permanent transport with technological
evolution
Fuel Ethanol
Produced in BrazilOverseas Terminals
Pipelines
Waterway
Terminals
Tankers
Vessels Fleet (Preliminary)Vessels Fleet (Preliminary)
46%47%80%55%47%% Transported volumes – Optimist Market
97%92%89%88%100%% Transported volumes - Base Market
3333252.000MR42180.000Panamax
Needed Numbers of VesselsCap. (m³)Ship Class
3.3952.3001.6021.100850Transported volumes (millions m³)
7.4004.9002.0002.0001.800Optimist Market (millions m³)
3.5002.5001.8001.250850Base Market (millions m³)
20112010200920082007YEAR
Overseas TerminalsOverseas Terminals
China
Caribbean
Japan
Europe
We are already prepared to export 2,0 million m3/year of Fuel Ethanol according to
ASTM - D 4806 Standard
Fuel Ethanol Exportation
Logistics is integration and sharing
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