Japanese lift South American investment

JAPAN's Teikoku Oil Co. has announced plans to build an additional gas pipeline in Venezuela in order to capitalise on an expected rise in demand from the country's power sector.

Construction of the 40km pipeline - from Teikoku's Guarico inland gas field to the pipeline network owned by state-run Petroleos de Venezuela S.A. (PdVSA) - is due to be completed next summer and will cost an estimated US$10.2 million.

When in operation - in tandem with the company's existing pipeline - Teikoku will be able to deliver 140 million cubic feet a day of natural gas to PdVSA's supply network. Teikoku's current daily distribution volume is 80 million cubic feet.