Shell says exported Brazilian ethanol to US in early June

Shell says exported Brazilian ethanol to US in early June

Rio de Janeiro (Platts)--21Jun2006

Royal Dutch Shell started exporting ethanol from Brazil to the US early
this month to meet rising US spot demand for the gasoline additive, a Shell
spokesman said Wednesday.

But the major's plan to export 150 million liters of Brazilian ethanol to
the US this year is "merely a test" and does not mean Shell is permanently
entering into Brazil's ethanol market. Brazilian ethanol is made from
sugarcane.

"You could say this is a test for us," said Ricardo David, a Shell
spokesman in Brazil, told Platts. Shell has no current plans to heavily invest
in the Brazilian ethanol sector and Shell does not know whether it will
continue ethanol exports from Brazil in 2007, he said.

David would not disclose the size of the Shell ethanol shipment this
month or whether there was more than one shipment.

The only foreign major to produce significant volumes of offshore Brazil
crude, Shell normally exports about 35,000 b/d of Brazilian crude from the
Bijupira-Salema field.

According to industry estimates, Brazilian ethanol exports to the US over
the 2006-2007 season -- a 12-month period beginning in April and covering the
country's two sugarcane harvest periods -- should nearly double to 800 million
liters this season, up from 420 million liters last season.

--Joshua Schneyer, newsdesk@platts.com

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