Consultations with Brazil on the steady import of ethanol mixture fuel

Seoul--(뉴스와이어)--The Ambassador for Economy and Trade, Mr. Park Sang-eun, visited Brazil as a representative of Korea's energy-related business corporations during April 10-17 to talk with Brazil's Minister for Agriculture, Mr. Roberto Rodrigues, concerning the steady import of ethanol mixture fuel and also visited the Brazilian Agency for Exports Promotion and Investments (APEX) and USACUCAR, a manufacturer of ethanol mixture fuel.

At the Korea-Brazil Summit Meeting held in November 2004, Korean corporations were actively encouraged to participate in oil exploration and energy sectors as well as public-private sector projects. At the Korea-Brazil Summit Meeting held in May 2005, both countries discussed promoting the expansion of joint development projects for energy resources.

During Ambassador Park's visit, the two countries consulted on the steady import of ethanol mixture fuel and local investment production plans as well as the intention and capability of Brazil to supply Korea with 5 million barrels of ethanol mixture fuel. In addition, the Brazilian side proposed that it is desirable for Korea to import ethanol mixture fuel that is directly produced through local investment to secure a long term and stable supply. On the basis of such discussions, it is expected that Korea and Brazil will examine the prospect of further discussions with the related ministries and companies between the two countries.

The above-mentioned 5 million barrels has been estimated under the assumption that 5% ethanol will be blended in the first stage, in consideration of Korea's annual consumption of gas for means of transportation, which is expected to reach 80 million barrels in the future (2005: 57 million barrels).