Brazil's National Economic and Social Development Bank agreed on Thursday to lend 4.5 billion reais (2.5 billion U.S. dollars) to a major gas pipeline project linking the gas-producing southeast to the northeastern region of the country.

    The Brazilian bank also signed an agreement with the China Development Bank, under which the Chinese bank will lend 750 million dollars to the Southeast Northeast Interconnection Gas Pipeline project.

    The 1,400-km pipeline, with a capacity of transporting 20 million cubic meters of gas per day, is designed to guarantee supplies to the southeast and transport gas to other regions of the country.

    The pipeline, which comprises three sections, will connect Cabiunas in Rio de Janeiro state with Catu in Bahia state.

    Construction of the first section is scheduled for completion in 2008. The second section is already operational, while work on the last stretch is to start in the first quarter of 2008.