Brazil court orders Petrobras to supply natural gas to Eletrobras
SAO PAULO (Reuters)—A Brazilian court ordered state-controlled oil firm Petróleo Brasileiro SA (Petrobas) to sell natural gas to Centrais Elétricas Brasileiras SA (Eletrobras), despite the state-controlled power utility's massive debt with the oil company.
Eletrobras plans to use the gas to begin testing a thermal power station under construction in the Amazon region that is scheduled to start operating in June.
In late February, Petrobras had refused to supply natural gas to test the Mauá 3 plant because Eletrobras and some of its subsidiaries did not pay several billion reais for fuel supplies.
The 590-MW Mauá 3 thermal plant is close to completion, but is at risk of not getting the gas to operate. Under the court order, Petrobras will be forced to sell enough natural gas to allow the testing to take place, but not the amount needed for the plant to fully operate.
In its 1Q financial statements, Petrobras said Eletrobras owed Petrobras 9.8 B BRL ($3 B), of which 8.2 B BRL stemmed from the power firm's subsidiary in the Amazon region.
Reporting by Luciano Costa and Bruno Federowski; editing by Grant McCool
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