1. PLANNING AND BRAZILIAN ENERGY MATRIX
MINISTRY OF MINES AND ENERGY
PLANNING AND BRAZILIAN ENERGY MATRIX
July of 2006
Ministry Silas Rondeau

2. SUMARY 1 – Brazilian Electrical System 2 – Energy Planning
3 – Energy Matrix
4 – Ten Year Electrical Energy Expansion Plan 2006/2015
5 – Key Projects
6 – Electrical Energy Auctions
7 – Others Energy Souces
8 – Agro-industry
9 – Oil and Gas

3. BRAZILIAN ELECTRICAL SYSTEM

4. BRAZILIAN ELECTRICAL SYSTEM Continental Dimensions
4 000 km
Sistemas Stand-alones
3.750 km
3.900 km
BRAZIL
EUROPE

5. BRAZILIAN ELECTRICAL SYSTEM
Thermal plants
Main Source
Isolated Systems
2 % of the Total Energy Market
1,448 km
Transmission
200 MW
Imports
3,186 MW
Installed Capacity
Hydroelectricity
Interconnected System
98 % of the Total Energy Market
84,795 km
7,970 MW
89,838 MW
ISOLATED
SYSTEMS
INTERCONNECTED
SYSTEM
Source: MME April

6. BRAZILIAN ELECTRICAL SYSTEM International interconnections
Bolivia
7 (GN)
Paraguay 3 4
Argentina
8 (GN)
Uruguay 5 1
Venezuela 2 6
International interconnections
ITEM
PRODUCT
ORIGIN
DESTINATION
CAPACITY 1
Electrical Energy
Venezuela
Boa Vista - RR
200 MW 2
Paraguay/Itaipu
Foz do Iguaçu
5,600 MW 3
Paraguay/Ande
50 MW 4
Brazil/Argentina
Garabi - RS
2,200 MW 5
Brazil/Uruguay
Livramento - RS
70 MW 6
Argentina
Uruguaiana - RS 7
Gas
Bolívia
Corumbá - MS
30 millions m 8
2,5 millions m
Source: MME, 2005

7. ENERGY PLANNING
Ministry of Mines and Energy

8. Basics planning goals of MME:
THE PLANNING PROCESS
Basics planning goals of MME:
Long term studies up to 30 years
Purpose: Integrated and global energetic goal

9. National Energy Matrix
THE PLANNING PROCESS
Products
Strategic Approach
Long Term Studies
(up to 30 years)
Electrical Energy
National Plan
National Energy Matrix
Mid Term Studies
(15 years)
References
Guidelines
Scheduling Approach
Short Term Studies
(up to 10 years)
Ten Year Electrical
Energy Plan

10. Interaction with CNPE and Society: MME
THE PLANNING PROCESS
The Planning Process:
Interaction with CNPE and Society: MME
Coordination and Definitions: MME
Studies Development: EPE

11. ENERGY MATRIX
Ministry of Mines and Energy

12. MAIN SOURCES FOR ELECTRICTY GENERATION
The most competitive source of the country
Renewable resource
Available Power: 260 GW (28% in operation)
HYDRO PLANTS
Expressive power available for generation of electrical energy)
Renewable Resource
Available Power over 500 MW/year
BIOMASS
Important reserves of mineral coal are available
32 billion ton (90% in Rio Grande do Sul State)
Power of 20,000 MW available for 100 years (supposing 50% used for generation of electrical energy)
MINERAL COAL
6 th largest reserve of uranium in the world
32 billion ton (equivalent to a 1.2 billion toe )
Huge power for generation of electrical energy
NUCLEAR
Reserve of 306 billion m3 (equivalent to 0.3 billion toe)
Production: 48 million m3/day (2005)
50% of Brazilian natural gas market was supplied with national production (2005)
NATURAL GAS
toe – ton oil equivalent

13. RENEWABLE SOURCES: BRAZIL AND THE WORLD
NO RENEWABLE 20 40 60 80
100
World 14 86 45 55
TAL QUADRO, REVESTE-SE DE UMA IMPORTÂNCIA MAIOR NO ATUAL CENÁRIO ENERGÉTICO MUNDIAL, QUANDO TRADICIONAIS FONTES DE ENERGIA COMEÇAM A SE ESGOTAR E TÊM SEUS PREÇOS ALCANÇANDO LIMITES, QUE FORÇAM A TODOS OS PAÍSES A DESENVOLVEREM ESFORÇOS NA OBTENÇÃO DE FONTES ALTERNATIVAS A AQUELAS DE ORIGEM FÓSSIL E NÃO RENOVÁVEIS.
Source: MME, 2006

14. ENERGY MATRIX - 2005 Renewable sources: Brazil 2005 – 45 %
World 2003 – 14 %
OCDE 2003 – 7.1 %
44.7% of the whole Brazilian energy matrix is composed of renewable sources, while the worldwide rate is 13.5% and only 7.1% in the OCDE countries. In Brazil, 15% of the renewable energy comes from hydropower generation and 29% from biomass. The remaining 55.3% are fossil fuels and another non-renewable sources.
The Brazilian Domestic Energy Supply (DES) of 2005 was million toes, corresponding to about 2% of the world energy supply. It is interesting to mention that the natural gas has been increasing participation in the Brazilian DES, from 3.7% in 1998 to 9.3% in On the other hand, oil and petroleum derivatives participations decreased from 46% to 38.4% in the same period.
100%
218.6 million [toe]
Source: MME 2006

15. BRAZILIAN ELECTRICAL ENERGY MATRIX
Renewable Sources:
Brazil 2005 – 89%
World 2003 – 18%
The Brazilian electrical energy supply matrix, in the same way, has a high percentage of renewable sources, with hydraulic energy being 85% of the matrix (8% imported from Paraguay) and biomass, 4%. On the other hand, the worldwide matrix shows a large portion of nuclear and fossil fuels, 82%. Hydraulic participation is 16% and the rest is 2%. The total electrical energy supply in Brazil was 442 TWh in 2005, corresponding to about 2.5% of the worldwide offer. It is noticeable that of the great hydraulic potential of Brazil, only 28.2% of a total of 258,000 MW has been exploited up to now. Brazil believes that its energy security necessarily includes an equilibrium between fossil and renewable sources use.
100%
441.6 [TWh]
Matrix associated with generation of electrical energy.
Included energy imported from Itaipu.
Source: MME 2006

16. TEN YEAR EXPANSION PLAN
AGENDA
TEN YEAR EXPANSION PLAN
Ministry of Mines and Energy

17. TEN YEAR EXPANSION PLAN 2006-2015
Important aspects:
MME guidelines: Specific plans, since long term studies are on execution.
Electrical Energy Market: from 374 TWh, in 2005, to 618 TWh, in 2015, requiring increments from 2,500 to 3,300 MW per year (firm energy) in the supply capacity, over the ten year period.
Supply: Adjustment of supply capacity to market requirements
At the end of planning period:
Brazil strongly interconnected.

18. TEN YEAR EXPANSION PLAN 2006-2015
Preparation Process:
Reference Terms: Developed by MME and handed to all public and private agents.
Plan Technical Studies: developed by EPE (Enterprise of Energetic Resource) under contract, supervision and follow up by MME.
Integration MME/EPE: strong interaction during the process with the teams of EPE and of MME/SPE.
Report of Ten Year Expansion Plan /2015: subject to public consultation on MME’s home page at .gov.br

19. TEN YEAR EXPANSION PLAN 2006-2015
DEMAND
Market Forecast: three projections of the economic growth
GDP
6.0%
HIGH GROWTH
ten years average of GDP: 5.0% p.a.
4.5%
4.5%
REFERENCE GROWTH
ten years average of GDP: 4.2% p.a.
4.0%
3.5%
LOW GROWTH
ten years average of GDP: 3.1% p.a.
3.0%

20. TEN YEAR EXPANSION PLAN 2006-2015
DEMAND
2005
2007
2009
2011
2013
2015
High
Reference
Low
Total demand - Brazil (GWh)
Load - Brazil (MWyear)
45 000
50 000
55 000
60 000
65 000
70 000
75 000
80 000
85 000
(*) percentual of reference forecast
11,732 MW year
15.4% (*)
87.2 TWh
9,954 MWyear
16.9% (*)
Obs.: Load supplied by Electricity System without classic self-production (without use the transmission lines).
**Trajectory of reference

21. TEN YEAR EXPANSION PLAN 2006-2015 Consumption Structure
DEMAND
Consumption Structure
2005
2015
This slide shows the consumption structure for the year 2005 and for the end of the period of the study, As we can see, the share of Industrial consumers reduces at this period and we have a growth in the share of Commercial and Residential consumers.
Total 2005*: 346 TWh
Total 2015*: 567 TWh
* Without classic self-production (when energy is produced near the load and without using the transmission system) .

22. TEN YEAR EXPANSION PLAN 2006-2015
SUPPLY
Sources:
Hydroelectricity;
Natural Gas;
Coal;
Biomass*;
Small Hydro Plants*;
Wind Power Plant*;
Nuclear
Cogeneration by natural gas;
Modernization and Power Upgrading;
* Sources of the governmental program called PROINFA

23. TEN YEAR EXPANSION PLAN 2006-2015
GRID
System under study:
This slide shows the Transmission System under study.

24. TEN YEAR EXPANSION PLAN 2006-2015
SUMMARY
REFERENCE GROWTH
GROWTH GDP = 4.2%
Population = 2.0 millions/year
Electrical energy consumption = 5.1% year
INSTALLED CAPACITY
2005 – 92,865 MW
2015 – 134,667 MW
ENERGY NECESSARY
2005 – 47,500 MW average
2015 – 76,000 MW average
DEMAND NECESSARY
2005 – 62,000 MWh/h
2015 – 99,000 MWh/h
BASIC GRID
2005 – 82,092 km
2015 – 123,429 km
41,800 MW
INSTALLED CAPACITY IN 10 YEARS
41,300 Km
OF TRANSMISSION LINES IN 10 YEARS
Investments
US$ 56 billions by 10 years
Source: MME, PDEE

25. TEN YEAR EXPANSION PLAN 2006-2015
Installed Capacity
Share of the Sources
Jan/2006 – 93,728 MW (*)
HYDRO
73%
NUCLEAR 2%
COAL
PCH, PROINFA,
etc. 3%
FUEL
OIL 1%
GAS 9%
IMPORTS 8%
DIESEL OIL
BIOMASS 0%
OTHERS
10%
HYDRO
73%
NUCLEAR 2%
PCH, PROINFA,
etc. 4%
FUEL
OIL 1%
GAS 9%
IMPORTS 6%
DIESEL OIL
BIOMASS
OTHERS
12%
COAL
Dec/2015 – 134,667 MW
(*) Included the power of the existing plants in the Isolated Systems that will be connected: Manaus/Macapá and Rondônia/Acre
Source: MME, PDEE

26. TEN YEAR EXPANSION PLAN 2006-2015 GRID
Interconnections Expansion
2009
North (Imperatriz) / North East – 1,500 MW in Dec.
2010
Magnifying North/South – 1,100 MW in Dec.
South/South East /Mid West – 1,000 MW in Dec.
2011
Madeira / South East – 3,000 MW in Jan.
2012
Madeira / South East – 3,000 MW in Dec.
2013
Belo Monte / North – 3,000 MW in Dec.
Belo Monte (Colinas) / South East – 1,100 MW in Dec.
2014
Belo Monte / Colinas – 3,000 MW in Dec. NE
N/ Man
SE/CO/ RO S
Ivaiporã
Imperatriz * IT
Mad BM
DC System
AC System
This slide shows the interconnections expansion and the transmission projects schedule.
Source: MME, PDEE

27. AGENDA
KEY PROJECTS
Ministry of Mines and Energy

28. Hydro plants on the Madeira river
KEY PROJECTS
Hydro plants on the Madeira river
Madeira river (6,450 MW)
JIRAU Hydro plant - Capacity: 3,150 MW
- Expected to operate (first unit): January, 2011.
SANTO ANTÔNIO Hydro plant - Capacity: 3,300 MW
- Expected to operate (first unit): January, 2012.
Total Investment:
US$ 7, millions
US$ 1.00 = R$ 2.70
Two of the most important plants in electrical energy supply are Jirau and Santo Antônio Hydroelectric power plants. They are located on Madeira River in the North region of Brazil. Each plant is composed of 44 bulb turbines and the total investment is expected to be about US$ 7, million. The total installed capacity will be 6,450 MW and, the first unit of Jirau hydro plant is expected to start operation in January 2001 and the first unit of Santo Antônio hydro plant is expected to start operation in Januar, 2012.

29. KEY PROJECTS BELO MONTE Hydro plant Xingú river Capacity: 11,181 MW
Expected to operate (first unit): December, 2013.
Total Investment: US$ 3, millions
US$ 1.00 = R$ 2.70
Belo Monte hydroelectric power plant is located on Xingú river, in the North region of Brazil, and it has a capacity of 11,181 MW.
BELO MONTE - project overview

30. ENVIRONMENTAL AND SOCIAL INDICATORS
Average of ground inundated per power installed:
UHEs existing: 0.52 km²/MW
UHEs of PDEE: km²/MW
UHE Belo Monte: km²/MW
UHE Jirau: 0.08 km²/MW
UHE Santo Antônio: 0.09 km²/MW
Source: MME, PDEE

31. System Interconnection Projects - MADEIRA
KEY PROJECTS
System Interconnection Projects - MADEIRA
TRANSMISSION GRID:
Two circuits, alternating current, 500 kV, km, MW; and
Two bipolos, direct current, 600 kV, km, MW.

32. Interconnections studied - BELO MONTE
KEY PROJECTS
Interconnections studied - BELO MONTE
TRANSMISSION GRID:
Under study to supply the NW and N regions.
Existing interconnection already to SE.

33. AGENDA
AUCTION 2006
Ministry of Mines and Energy

34. ELECTRICAL ENERGY AUCTION - A-3
Auction Date: June 29, 2006
Start of Supply : 2009
Projects that traded electrical energy:
15 Hydro plants and 16 Thermal plants
Results:
Energy traded: 356,314 MWh (1,682 MW year)
Hydro: 270,331 MWh (1,028 MW year)
Thermal: 85,983 MWh (654 MW year)
Total Investment: US$ 16.9 billions
Average Price: Hydro plants - US$ 46.95/MWh
Thermal plants - US$ 49.03/MWh
Average Price - US$ 47.76/MWh
The electrical energy auction A-3 happens three years before the effective supply. Recently, in June 29, the last A-3 auction took place. 15 Hydro plants and 16 thermal plants traded their energy. The total energy traded was 356,314 MWh, with investments of US$ 16.9 billion. The average price of the electrical energy was about US$ 47.76/MWh.
US$ 1.00 = R$ 2.70

35. ELECTRICAL ENERGY AUCTION - A-5
7 Projects:
Power
Total Investments MW
US$ millions
7,276
7,977
Santo Antônio
3,150 MW
Jirau
3,300 MW
US$ 1.00 = R$ 2.70
Date: 09/05/2006
Dardanelos
261 MW
Salto Grande
53 MW
Mauá
382 MW
Barra do Pomba
80 MW
Cambuci
50 MW

36. TRANSMISSION AUCTION AUGUST/2006
(August, 18 of 2006)
2,261 km
US$ millions
US$ 1.00 = R$ 2.70
Funil – Itapebi 230 kV – 198 km
Mato Grosso – Rondônia Integration kV – 949 km Projects
Neves1 – Mesquita 500 kV – 172 km
Mascarenhas – Verona kV – 107 km
Completing Norte – Sul Integration 500 kV – 720 km Projects
Cascavel Oeste – Foz Iguaçu kV – 115 km

37. TRANSMISSION AUCTION SEPTEMBER/2006
1,026 km
US$ millions
US$ 1.00 = R$ 2.70
Tauá – Picos kV – 180 km
Paraíso – Açu 230 kV – 135 km
Ibicoara – Brumado 230 kV – 105 km
Paracatu – Pirapora 500 kV – 260 km
Itararé – Jaguaraíva kV – 40 km
Londrina – Maringá 230 kV – 83 km
Curitiba – Bateias 500 kV – 38 km
Canoinhas – S.Mateus 230 kV – 48 km
C. Novos – Videira 230 kV – 71 km
D. Francisca – Santa Maria 230 kV – 66 km

38. OTHERS ENERGY SOURCES

39. RENEWABLE ENERGY INCENTIVE PROGRAM PROINFA
PROINFA, co-coordinated by the Ministry of Mines and Energy (MME) and implemented by Eletrobrás, is an important instrument to the diversification of the national energy mix, once it will guarantee greater reliability and supply security.
PROINFA has assured the purchase of 3,300 MW from power plants based on biomass, wind and small hydro power (SHP) to be connected to the integrated national grid (SIN).

40. 06 in operation (capacity – 141.70 MW) 36 under construction
Renewable Energy Incentive Program PROINFA
Programa de Incentivo às
Fontes Alternativas de Energia Elétrica - PROINFA
GENERAL RESULTS
139 projects hired. :
Total capacity 3,300 MW
06 in operation (capacity – MW)
36 under construction
52 with EPCs signed
Forecast 2006 – 38 power plants installed ( MW)
Forecast 2007 – 101 power plants installed (2, MW)

41. AGRO- INDUSTRY

42. SUGARCANE AGRO-INDUSTRY
Current Situation:
Number of Sugar mills/Distilleries: 313
Production: 16 million m3
Production Capacity: 18 million m3
Cropped Area for ethanol Production: 3 million hectares
As of 2010:
Investments that will amount US$ 10.0 billion in 89 plants
Increase in the ethanol production (in comparison with 2005): 8 million m3
Expansion in the sugarcane cropped area: 2 million hectares
PARA GARANTIR UM TAL DESEMPENHO, DISPOMOS DE UMA CAPACIDADE DE PROCESSAMENTO QUE PERMITE A PRODUÇÃO DE 18 BILHÕES DE LITROS POR 313 UNIDADES DE PRODUÇÃO CONCENTRADAS PRINCIPALMENTE NO ESTADO DE SÃO PAULO. RESSALTA-SE, AINDA, A GRANDE FLEXIBILIDADE QUE ESSAS PLANTAS POSSUEM PARA PRODUZIR ÁLCOOL HIDRATADO OU ANIDRO.
ESTÃO PREVISTOS INVESTIMENTOS DA ORDEM DE US$ 10 BILHÕES ATÉ O ANO DE 2010 NA CONSTRUÇÃO DE MAIS 89 NOVAS USINAS, O QUE ELEVARÁ A PRODUÇÃO DE ÁLCOOL EM MAIS 8 MILHÕES DE M3.
PARA ESSE AUMENTO DA PRODUÇÃO, SERÃO AGREGADOS MAIS 2 MILHÕES DE HECTARES À ÁREA CULTIVADA COM CANA DE AÇÚCAR PARA A PRODUÇÃO DE ÁLCOOL. E ISSO REPRESENTA MUITO POUCO EM COMPARAÇÃO COM AS DIMENSÕES DO TERRITÓRIO NACIONAL. O BRASIL POSSUI UMA EXTENSÃO TERRITORIAL DE 851 MILHÕES DE HECTARES. A ÁREA TOTAL AGRICULTÁVEL É DE 383 MILHÕES DE HECTARES, DOS QUAIS, 91 ESTÃO ATUALMENTE DISPONÍVEIS PARA A EXPANSÃO AGRÍCOLA, EXCLUÍDAS TODAS AS ÁREAS DE PROTEÇÃO AMBIENTAL, E SOMENTE 2,7 CONSTITUEM A ÁREA CULTIVADA PARA O ETANOL. OU SEJA, A EXPANSÃO DA ÁREA CULTIVADA PARA O ETANOL CORRESPONDE A POUCO MAIS DE 2% DA ÁREA DISPONÍVEL PARA A EXPANSÃO AGRÍCOLA.
BRAZIL (Territorial Extension):
Total Agriculture Area: of which:
Fertile and free areas for agriculture:
Present cropped area for ethanol:
(in million of hectares)
Source: Ministry of Mines and Energy;
Ministry of Agriculture, Livestock and Food Supply

43. AGRI-ENERGY - ETHANOL FLEX-FUEL Technology
Any mixture of gasoline and alcohol can be used, from 0 to 100% ;
In May/2006: The domestic flex-fuel vehicle sales represented 71% of all light vehicles (including imported) sold in the same period;
Total domestic flex-fuel vehicle sales ( ): 1,757,606 units. (*)
(*) until May/2006.
7 multinational automotive manufacturers settled in Brazil are producing 32 different models of FFV vehicles
Last June, an automotive manufacturer announced that, from now on, it will going to produce FFV vehicles only.
GRANDE PARTE DO AUMENTO DA DEMANDA PELO ETANOL COMBUSTÍVEL REGISTRADA EM 2005 NO BRASIL DEVEU-SE AOS VEÍCULOS DOTADOS DA TECNOLOGIA FLEX-FUEL.
A TECNOLOGIA BRASILEIRA NO DESENVOLVIMENTO DE MOTORES A ÁLCOOL, FEZ COM QUE, NO ÚLTIMO MÊS DE MARÇO DE 2006, 76 % DOS VEÍCULOS LEVES NOVOS (NACIONAIS E IMPORTADOS) COMERCIALIZADOS NO PAÍS FOSSEM BI - COMBUSTÍVEIS – ÁLCOOL/GASOLINA.
DESDE O INÍCIO DA SUA COMERCIALIZAÇÃO, EM MAIO DE 2003, ACUMLAM-SE MAIS DE 1,5 MILHÕES DE VEÍCULOS VENDIDOS.
Source: Ministry of Development, Industry and Foreign Trade;
Brazilian Association of Automotive Vehicle Manufacturers

44. BIODIESEL: Producers in Commercial Operation
and Projects Forecast (As of Dec/2007)
2005 to
2007
Authorized 2%
2008
2012
Mandatory
From 2013 on 5%
Number of Plants
Installed Capacity (MM L/year)
IN COMMERCIAL OPERATION 7 91
IN AUTHORIZATION PROCESS (ANP / SRF) 15
366
UNDER CONSTRUCTION OR PROJECT
813
NEW PROJECTS
687
TOTAL 52
1,957
NA VISÃO MAIS OTIMISTA, A CAPACIDADE PRODUTIVA DE PRODUTORES EM OPERAÇÃO ATÉ DEZEMBRO DE 2007 SE APROXIMA DOS 2 BILHÕES DE LITROS AO ANO EM 37 UNIDADES DE PRODUÇÃO ESPALHADAS PELO TERRITÓRIO NACIONAL. OU SEJA, NESSA VISÃO ESTAREMOS MUITO PRÓXIMOS DA DETERMINAÇÃO LEGAL QUE ESTABELECE A MISTURA B5 OBRIGATÓRIA EM NESSE CASO, O GOVERNO PODERÁ, SEGUNDO O MARCO REGULATÓRIO, PROCEDER A ANTECIPAÇÃO DESSA OBRIGATORIEDADE OU O AUMENTO DO PERCENTUAL DE MISTURA MÍNIMA DE BIODIESEL NO DIESEL COMERCIALIZADO.
Legend:
Under Construction or Project
In Commercial Operation
(*) Elaborated with obtained information of producing potentials and investors. Position of 31/05/06.
ANP: National Petroleum Agency
SRF: IRS (Internal Revenue Service)
New Project Intentions
In Authorization Process (ANP / SRF)

45. BIODIESEL AUCTIONS Biodiesel Auctions Auction Volume (Million liters)
In 2005, The Federal Government has established:
The mandatory B2 mixture is now anticipated for January of 2006, only for biodiesel produced by industries that have the so-called Social Fuel Certificate and commercialized in public auctions promoted by the National Agency of Petroleum – ANP.
Biodiesel Auctions
Auction
Volume
(Million liters)
Deliver
Nov/2005 70
2006
Mar/2006
170
2006 and 2007
Jul/2006 (1) ( 2)
600
2007
PASSAR RÁPIDO
A IMPORTÂNCIA DO SELO COMBUSTÍVEL SOCIAL TORNOU-SE EVIDENTE COM A DETERMINAÇÃO DO GOVERNO DE ANTECIPAR A MISTURA OBRIGATÓRIA DE BIODIESEL – B2 – A PARTIR DE JANEIRO DE 2006 ATÉ 2007.
OS LEILÕES DE BIODIESEL GARANTIRÃO UMA FATIA DO MERCADO DE BIODIESEL POR INDUSTRIAS QUE POSSUEM O SELO COMBUSTÍVEL SOCIAL.
ESSE CERTIFICADO INDICA QUE O PRODUTOR INDUSTRIAL DE BIODIESEL CUMPRIU REQUISITOS SOCIAIS BÁSICOS: AQUISIÇÃO DE VOLUMES MÍNIMOS DE MATÉRIA PRIMA ORIUNDA DA AGRICULTURA FAMILIAR – DEPENDENDO DA REGIÃO - E PRESTA A ASSISTÊNCIA TÉCNICA QUE VAI GARANTIR NÍVEIS COMPETITIVOS DE PRODUTIVIDADE.
COM ESTA MEDIDA, O PAÍS ESTÁ LANÇANDO AS BASES PARA A FASE DE MISTURA OBRIGATÓRIA EM TODO O TERRITÓRIO NACIONAL A PARTIR DE 2008.
O PRIMEIRO LEILÃO DE BIODIESEL JÁ FOI REALIZADO EM NOVEMBRO DE 2005 E TODO O VOLUME DE 70 MILHÕES DE LITROS FOI ARREMATADO BENEFICIANDO MAIS DE 65 MIL FAMÍLIAS.
POR ISSO, NOVOS INVESTIDORES APRESENTARAM PROJETOS QUE SUSTENTARAM A REALIZAÇÃO DE MAIS DOIS LEILÕES DE BIODIESEL AINDA NO PRIMEIRO SEMESTRE DE 2006, COM UMA ESTIMATIVA DE 670 MILHÕES DE LITROS A SEREM ARREMATADOS.
(1) And (2): One single Auction with two Lots that will take place in July, 11th and 12th of 2006.
ANP = National Petroleum Agency

46. H-BIO: A NEW BRAZILIAN TECHNOLOGY

47. COMPLEMENTARY PROCESSES
H-BIO AND BIODIESEL:
COMPLEMENTARY PROCESSES
Diesel oil production process that uses vegetable oils as raw materials in a petroleum refinery.
Hidrogenation of the mixture:
diesel + vegetable oil.
ALÉM DO BIODIESEL, PROMOVIDO PELO GOVERNO FEDERAL POR MEIO DO PROGRAMA NACIONAL DE PRODUÇÃO E USO DO BIOSIESEL, OUTRA ALTERNATIVA TECNOLÓGICA SE APRESENTA: O H-BIO.
O H-BIO, QUE FOI DESENVOLVIDO PELO CENPES NOS ÚLTIMOS 18 MESES, PODERÁ ENTRAR EM ESCALA INDUSTRIAL AINDA EM O NOVO PROCESSO DESENVOLVIDO PELA PETROBRAS VAI UTILIZAR ÓLEO VEGETAL COMO INSUMO PARA A OBTENÇÃO DE ÓLEO DIESEL, POR MEIO DA HIDROGENAÇÃO DE UMA MISTURA DE ÓLEO VEGETAL E ÓLEO MINERAL, COMO CARGA DAS REFINARIAS.

48. BIOFUELS PRODUCTION H-BIO Agribusiness Diesel Transesterification Unit
Hidrogen
Fractions of
diesel
Agribusiness
Refined
Oil
Refinery
Grains
Plantation
Oil Crushing
Diesel OR OR
Transesterification
Unit
Distributors
Biodiesel
Ethanol or
Methanol
Diesel
B2 or B5
mixture OR
Gas Station
Glycerin Others

49. CHARGE OPTIONS FOR H-BIO PROCESS
Castor Beans
Sunflower
Soy
Palm Oil
Cotton
Average Agriculture Productivity
1,500 kg/ha ,500 kg/ha ,000 kg/ha ,000 kg/ha ,000 kg/ha
Percentage of Vegetable Oil
47% % % % %
Vegetable Oil Production (kg/ha) ,
Brazilian Production in m3/year
90, , ,600, , ,000

50. OIL AND GAS

51. OIL: SELF-SUFFICIENCY
500
1.000
1.500
2.000
2.500
3.000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Thousand barrels/day
Oil Production
Oil Products + NG and Alcohol Consumption
Oil Products Consumption
1995
45%
71%
96%
Production/Consumption Ratio
SELF-SUFFICIENCY
APRIL/2006
PELO GRÁFICO, PODE-SE OBSERVAR QUE A PRODUÇÃO DE PETRÓLEO EM 2005 SITUOU-SE POUCO ACIMA DE 1,71 MILHÃO DE BARRIS POR DIA, CORRESPONDENTE A 96% DO CONSUMO DE DERIVADOS DE PETRÓLEO DO ANO, QUE ALCANÇOU POUCO MAIS DE 1,78 MILHÃO DE BARRIS POR DIA.
According to the slide, petroleum production in 2005 was 1,71 million of barrels per day, which represents 96% of annual derivatives consumption.
COM A ENTRADA EM OPERAÇÃO DA PLATAFORMA DE PRODUÇÃO P-50, EM ABRIL DE 2006, ALCANÇAMOS NOSSA AUTO-SUFICIÊNCIA NA PRODUÇÃO DE PETRÓLEO.
With P50 Plataform in production, since April 2006, Brasil reachs self-sufficiency in oil production.
EM 2007, CHEGAREMOS A PRODUÇÃO DE 2,06 MILHÕES DE BARRIS POR DIA, DOS QUAIS 2,0 MILHÕES APENAS PELA PETROBRAS.
In 2007, Brasil will reach the production of 2,06 million of barrels per day, 2,0 million only by Petrobras.
AINDA QUE O GRÁFICO APRESENTE UM EXCEDENTE EXPORTÁVEL DE PETRÓLEO PRÓXIMO A 187 MIL BARRIS POR DIA EM 2007, CORRESPONDENTES A 10 % DA DEMANDA DE DERIVADOS, ESSE VALOR DEVERÁ CAIR RAPIDAMENTE APÓS 2010, CASO NÃO SEJAM EFETUADAS NOVAS DESCOBERTAS DE PETRÓLEO NAS BACIAS BRASILEIRAS.
(A MANUTENÇÃO DA AUTO-SUFICIÊNCIA A MÉDIO E LONGO PRAZOS SE DARÁ POR MEIO DO PLANEJAMENTO E EXECUÇÃO DAS RODADAS DE LICITAÇÃO DE BLOCOS EXPLORATÓRIOS.)
By the grafic, in 2007, Brasil will have a surplus of petroleum production
The graph presents a surplus of petroleum production of 187 thousand barrels per day in 2007, corresponding to 10% of the demand of derivatives. This value will fall quickly after 2010, if Brasil do not find new fields in the brazilian basins. (new bidding rounds of blocks will assure the maintenance of the self-sufficiency in the medium and long run.)

52. Estimated Investiments
REFINING AND PETROCHEMICAL
Estimated
Investiments
Refineries: US$ 9 billion
Petrochemical
Complexes: US$ 8.5 billion
O BRASIL POSSUI 13 REFINARIAS, COM CAPACIDADE OPERACIONAL INSTALADA DE CERCA DE 2 MILHÕES BARRÍS POR DIA, PRODUZINDO 1,75 MILHÃO DE BARRIS POR DIA DE DERIVADOS.
The Brazil has a total of 13 refineries, with operational capacity up to 2 millions barrels per day, producing 1.75 million barrels of derivatives. This difference is due to the brazilian refinery hardware and the heavy oil produced.
PARA ELIMINAR NOSSA DEPENDÊNCIA EXTERNA DE DERIVADOS, O BRASIL NECESSITA DE INVESTIMENTOS, ATÉ 2010, DA ORDEM DE US$ 9 BILHÕES PARA AUMENTO DA CAPACIDADE DE REFINO, BEM COMO PARA MELHORIA DA QUALIDADE DOS DERIVADOS E PARA AJUSTES NAS REFINARIAS PARA PROCESSAR PETRÓLEO MAIS PESADOS NACIONAIS.
To eliminate our external dependence on derivatives, we need investments around US$ 9,0 billions until 2010, on enhancing derivatives qualities, adjusting refineries hardware to process brazilian heavy oil and to built a new refinery, to be operating up to 2010.
A DEMANDA BRASILEIRA POR DERIVADOS DEVE CRESCER 2,4% AO ANO ATÉ DAÍ, A NECESSIDADE DO AUMENTO DA CAPACIDADE DE REFINO NO BRASIL. NESSE SENTIDO, FOI ASSINADO UM MEMORANDO DE ENTENDIMENTOS COM A VENEZUELA PARA A CONSTRUÇÃO DE UMA REFINARIA COM CAPACIDADE DE 200 MIL BARRIS/DIA NO ESTADO DE PERNAMBUCO. ADICIONALMENTE, ESTÁ PREVISTA A CONSTRUÇÃO DA REFINARIA PETROQUÍMICA NO RIO DE JANEIRO, QUE PRODUZIRÁ 68% DE PETROQUÍMICOS BÁSICOS E 32% DE ÓLEO DIESEL, NAFTA, COQUE DE PETRÓLEO E GLP. A CAPACIDADE TOTAL DE PROCESSAMENTO DESTA REFINARIA É DE 150 MIL BARRIS/DIA. ESSES EMPREENDIMENTOS GARANTIRÃO O ATENDIMENTO DA DEMANDA DE DERIVADOS ATÉ 2015
Brazilian derivatives demand must grow 2.4% per year until The request for new refinery is an evidence. According to the Brasil – Venezuela agreement, it will be constructed a new refinery of 200 thousand barrels per day in State of Pernambuco, Northeast. In addition, it will be construct a petrochemical refinery in State of Rio de Janeiro, wich will produce 68% percent basic petrochemical products and 32% of diesel oil, nafta, liquid of petroleum gas (LPG) and coke. The total capacity of this unit will be 150 thousand barrels per day. The demand for derivatives will be assured with these two units until 2015.
O BRASIL POSSUI 4 PLANTAS PETROQUÍMICAS.
UMA DELAS – A RIO POLÍMEROS – ENTROU EM OPERAÇÃO EM TRATA-SE DA PRIMEIRA PLANTA DO PAÍS QUE USA GÁS NATURAL COMO MATÉRIA PRIMA E CONSTITUI-SE O MAIOR COMPLEXO PARA PRODUÇÃO DE POLIETILIENO A PARTIR DO GÁS NATURAL NA AMÉRICA LATINA.
AS OUTRAS PLANTAS, LOCALIZADAS NOS ESTADOS DA BAHIA, SÃO PAULO E RIO GRANDE DO SUL, UTILIZAM NAFTA E CONDENSADO, EM 2004, CONSUMIRAM 14 MILHÕES DE METROS CÚBICOS DESSE INSUMO (10 MILHÕES DE TONELADAS).
NO SETOR PETROQUÍMICO, OS INVESTIMENTOS PREVISTOS (ATÉ 2011) GIRAM EM TORNO DE US$ 8,5 BILHÕES. ESTES INVESTIMENTOS INCLUEM NA REFINARIA PETROQUÍMICA NO RIO DE JANEIRO (PREVISTA PARA 2011) E INVESTIMENTOS EM DIVERSAS PLANTAS TAIS ÁCIDO ACRÍLICO EM MINAS GERAIS, PLANTA DE PTA EM SUAPE/PE, UNIDADE DE POLIPROPILENO EM PAULÍNIA/SP, UNIDADE DE POLIPROPILENO EM DUQUE DE CAXIAS/RJ E MAUA/SP E OUTRAS UNIDADES DE POLIOLEFINAS ESPALHADAS PELO BRASIL – BA, SP).
There are 4 petrochemical plants in Brasil.
Rio Polímeros plant started operating in 2005 and is the first one using gas as raw material in Brasil. The other plants uses naphta as feedstock. In 2004 consume 14 million cubic meters (10 million tons).
In Petrochemical Sector, foreseeing investments are around US$ 8,5 billion until These investments include the mentioned petrochemical refinery in Rio de Janeiro, beginning operation in 2011, and several new plants as acrylic acid plant in State of Minas Gerais, PTA plant in State of Pernambuco, polypropylene plants in State of São Paulo and State of Rio de Janeiro.
INFORMAÇÃO ADICIONAL: A CAPACIDADE DE 7,5 MILHÕES DAS CENTRAIS PETROQUÍMICAS REFERE-SE À SOMA DAS CAPACIDADES DOS SEGUINTES PRODUTOS: ETENO: 3,45 MILHÕES TON / ANO; PROPENO: 1,9 MILHÃO TON / ANO; BENZENO: 900 MIL TON / ANO; TOLUENO:296 MIL TON / ANO; XILENO: 531 MIL TON / ANO; BUTADIENO + BUTENO:435 MIL TON / ANO.
Additional information: The production capacity of petrochemical plants is 7.5 million refers to total capacity of the following products: ethylene: 3.45 million tons per year, propylene: 1.9 million tons / year, benzene: 900 thousand tons / year, toluene: 296 thousand tons / year, xylene: 531 mil tons / year, butene and butadiene: 435 thousand tons / year.
Refineries : (13) – nominal capacity: 2,000 thousand barrels/day
New Refineries: (2) – nominal capacity: 350 thousand barrels/day
Petrochemical (4) – nominal capacity: 7,500 thousand ton / year
Complexes:

53. BRAZILIAN MARKET OF NATURAL GAS
Source: ANP May/2006

54. South Network Expansion
GAS PIPELINES NETWORK
Gas pipelines network expansion: 4,557.6 km
Investment: US$ 4.5 billion
PIPELINES km
IVESTMENT
US$ million
Present
5,688 -
Under Implementation
1,076
1,054
New
3,481.6
3,469
Total
10,245.6
4,523
North Network
Northeastern Network
Southeastern Network
Gasene
Markets
million m³/d
Consumption (*)
46.6
Potential until 2010
127 # S
South Network Expansion
(*) Industry, automobile, residence, commerce, power generation, cogeneration and orders (including CNG).
Present Pipelines
Gas Pipes under implementation
New Gas Pipes

55. SEVEN SUCCESSFUL ROUNDS: 1999-2005
Stable rules
More than US$ 1.3 billion in signature bonus
US$ 16 billions in exploration and production of predicted investments (Minimum Exploratory Program)
594 awarded blocks
64 E&P concessionaries
28 from Brazil
36 foreign companies from 16 different countries
DESDE 1999 FORAM REALIZADAS SETE RODADAS DE LICITAÇÕES DE BLOCOS EXPLORATÓRIOS PARA PETRÓLEO E GÁS NATURAL.
SINCE 1999 SEVEN BIDDING ROUNDS OF EXPLORATORY BLOCKS HAD BEEN DONE.
O SUCESSO DESSAS RODADAS PODE SER TRADUZIDO NOS VALORES DESTACADOS NESTE QUADRO, ONDE OBSERVA-SE QUE FORAM ARRECADADOS, A TÍTULO DE BÔNUS DE ASSINATURA DOS CONTRATOS DE CONCESSÃO, US$ 1,3 BILHÕES. ESTÃO PREVISTOS CERCA DE US$ 16 BILHÕES EM INVESTIMENTOS NA EXPLORAÇÃO E PRODUÇÃO DE PETRÓLEO E GÁS NATURAL ATÉ 2012 (OBS: TRATAM-SE DE INVESTIMENTOS OFERTADOS PELAS EMPRESAS A TÍTULO DO PROGRAMA EXPLORATÓRIO MÍNIMO – PEM, QUE É CRITÉRIO PARA A AVALIAÇÃO DAS OFERTAS PARA CADA BLOCO NO LEILÃO).
THE SUCCESS OF THESE ROUNDS CAN BE ILUSTRATED BY THE VALUES DETACHED IN THIS PICTURE. MORE THAN US$ 1,3 BILLION. THE FORESEEN INVESTIMENT REACHED ABOUT US$ 16 BILLION IN THE EXPLORATION AND PRODUCTION OF OIL AND NATURAL GAS UP TO 2012 (OBS: THIS IS INVESTMENTS OFFERED FOR THE COMPANIES BY THE MINIMUM EXPLORATORY PROGRAM, THAT IS ONE CRITERIA FOR THE OFFERS EVALUATION FOR EACH BLOCK IN THE AUCTION).
ENTRE 1999 E 2005 FORAM CONCEDIDOS 594 BLOCOS EXPLORATÓRIOS, SENDO QUE, APÓS A 7ª RODADA (2005), O PAÍS PASSOU A TER 64 GRUPOS ECONÔMICOS ATUANDO NA EXPLORAÇÃO E PRODUÇÃO DE PETRÓLEO E GÁS NATURAL (ATÉ A 6ª RODADA ATUAVAM SOMENTE 39 EMPRESAS).
ATUALMENTE DOS 6,4 MILHÕES DE KM² DE BACIAS SEDIMENTARES (ÁREAS EM BEGE NO MAPA), SOMENTE 332 MIL KM² ESTÃO SOB CONCESSÃO, O QUE REPRESENTA 5% DAS NOSSAS BACIAS.
PARA 2006, TRABALHA-SE NA PREPARAÇÃO DA 8ª RODADA DE LICITAÇÕES DE BLOCOS EXPLORATÓRIOS, QUE DEVERÁ OCORRER EM SETEMBRO DE 2006.
BETWEEN 1999 AND 2005, IT WAS GRANTED 594 EXPLORATORY BLOCKS. AFTER 7ª ROUND (2005), BRASIL IS COUNTING WITH 64 ECONOMIC GROUPS ACTING IN THE OIL AND NATURAL GAS EXPLORATORATION AND PRODUCTION (UNTIL 6ª ROUND, ONLY 39 COMPANIES ACTING). CURRENTLY, FROM 6,4 MILLION KM ² OF SEDIMENTARY BASINS (AREAS IN BEIGE IN THE MAP), ONLY 332 THOUSAND KM ² IS UNDER CONCESSION, WHAT REPRESENTS 5% OF OUR BASINS. FOR 2006, WE ARE PREPARING THE 8TH BIDDING ROUND OF EXPLORATORY BLOCKS, THAT IS EXPECTED TO OCCUR IN SEPTEMBER.
Sedimentary basins:
6.4 millions sq km
Granted area:
332 thousand sq km (5%)
Perspective for 2006
8th Bidding Round for Exploratories Blocks
Source: MME/ANP (Feb/2006)

56. 8TH BIDDING ROUND FOR EXPLORATORIES BLOCKS SEPTEMBER OF 2006
OBJECTIVES
Replace petroleum reserves to guarantee the self-sufficiency at medium and long term
Replace and increase the natural gas reserves in order to enhance the production
Expectation: enhancement of 30% in the natural gas offer

57. PLANNING AND BRAZILIAN ENERGY MATRIX
MINISTRY OF MINES AND ENERGY
PLANNING AND BRAZILIAN ENERGY MATRIX
July of 2006
Ministry Silas Rondeau