CEG Natural Gas Distribution

Promoter – Financial Intermediary

Companhia Distribuidora de Gas do Rio de Janeiro, CEG

Location

• Brazil

Description

The project concerns investments aimed at renovating and extending the existing natural gas network in the metropolitan area of Rio de Janeiro, as well as at converting a large part of the gas distribution system of Rio de Janeiro from manufactured gas to the use of more energy-efficient and less expensive natural gas.

Objectives

To contribute to the country's efficient use of energy resources. Manufactured gas will be replaced by natural gas resulting in improved efficiency and lower specific emissions. To strengthen the reliability of Brazil's electricity generation system through increased availability of gas for thermal power generation.

Comments

Gas Distribution

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

USD 40 mio (approx EUR 42 mio)

Total cost (Approximate amount)

USD 100 mio (approx EUR 106 mio)

Environmental aspects

The project is expected to have a positive impact on the environment after completion. The renovation of the existing gas network and the conversion from manufactured gas to natural gas aims at reducing significant gas losses in the network and the emissions from a town-gas plant. The extension of the network of natural gas fuel stations would help to reduce air pollution from traffic.Apart from disturbances during construction, impacts from medium and low pressure gas distribution grids remain normally limited and are not subject to detailed environmental assessment. For its high pressure grid, the promoter is required to conduct environmental assessment with involvement of the public.

Procurement

The promoter will advertise a procurement notice for the project in the Official Journal of the EC with the subsequent prequalification of potentially interested companies and integration into its vendors list.

Status

Signed - 21/11/2003