Petrobras To Supply E3 Blend to Stations in Japan

17 June 2008

The Nikkei reports that Petrobras will supply E3 (3% ethanol) as early as this year to independent gasoline stations in Japan, with the wholesale price expected to be 1-2 yen less per liter (US$0.035-$0.07/gallon US) than conventional gasoline.

Petrobras believes that its E3—using ethanol imported from Brazil—will be less expensive than gasoline even with transportation and import costs included.

The Brazilian firm plans to mix gasoline and ethanol in Okinawa Prefecture at Nansei Sekiyu KK, which it acquired in April, and sell the blended product at some 10,000 gas stations not affiliated with the major oil distributors. Overall output is estimated at up to 30,000 barrels a day, or the equivalent of roughly 3% of domestic consumption.