Brazil's state-run energy company Petrobras and China's Sinopec said on Monday that they had signed a deal to build a gas pipeline in Brazil.

The 239-million-U.S. dollar contract outlines the construction of a 300-km natural gas pipeline, linking Cabiunas in Rio de Janeiro state to Victoria in Espirito Santo state.

The 28-inch (about 70 cm)-diameter pipeline will be capable of carrying 20 million cubic meters of gas daily.

The pipeline, part of a 1,365-km natural gas pipeline project dubbed Gasene, will carry gas from Rio de Janeiro to northeast Brazil. Other segments of the project will link Victoria to Bahia and then to Catu.

The Gasene project will ultimately supply the northeastern region with natural gas produced in the southeast, and is envisaged to create new markets in the Cabiunas-Catu region.

Brazil plans to spend 6.5 billion dollars in the near future to integrate gas distribution in the country.

Source: Xinhua