According to Akihiro Takase, in a statement published online on Bloomberg, "The Brazilian pipeline network is one of the projects we're looking at. Although he declined to elaborate further, Takase revealed that Tokyo Gas would also look into investing in other overseas projects as part of its business plans.
Should the deal go through, Tokyo Gas will have up to a 15% stake in the two companies that Petroleo Brasileiro SA is setting up to develop the pipelines, Transportadora do Nordeste SA and Transportadora do Sudeste SA. The companies will develop the north eastern and southeastern sections of the current network.
Funding for Tokyo Gas' investment is expected to come from the utility joining a consortium of international banks and Japanese trading companies.
Petrobras has plans to spend around US$3.8 billion by 2007 to build pipelines that will transport gas to more customers and, thereby, help cut its losses in the gas business.
