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GasBrasiliano plans to invest 53mn reais (US$16.4mn) this year to build 80km of pipelines in the northwest region of São Paulo state.
The investment will see the company reach a natural gas distribution network of 1.110km in 33 municipalities, in addition to four cities supplying compressed natural gas, the Brazilian company told BNamericas in an email interview.
The number of clients is expected to hit 28,000 in 2018, when 25 new industrial customers are set to be connected to the grid.
In January, GasBrasiliano connected three new industrial clients in the ceramics, civil construction, and oils and lubricant polish business segments.
GasBrasiliano has been stepping up its technical studies to bring natural gas and biomethane into the sugar-alcohol sector.
The goal is to partially replace diesel fuel used by the producer's fleet via the dual-fuel technology, and also to stimulate cogeneration in the mills through the insertion of the hybrid steam cycle (sugarcane bagasse and natural gas).
"The studies have shown positive results so far and the expectation is that sugar-alcohol production plants will be interconnected to the natural gas distribution system in the near term," the company said.