Petrobras plans to shift away from ethanol, focus on upstream, and divest refineries abroad.

摘要

The Brazilian company announced that it is suspending investment in a $3.1B ethanol pipeline that would be the largest in the world. Lost investment could result in project scale-backs, which could consequendy keep fuel prices at the pump high. Petrobras said it will not make payments on the 1.3K-km (808-mi) pipeline next year, which suggests a shortening or delay of the project. Since the proposal was conceived in 2007, investments in Brazilian ethanol capacity have fallen, with production at a standstill. If the pipeline is constructed, transportation costs for ethanol could be cut by 50%.