The pipelines would link ethanol-producing areas in Brazil's central state of Goias via main producing areas in Sao Paulo state to the port of Sao Sebastiao on the Atlantic Ocean. For the past few years, Petrobras has been in talks with Japan, a major oil importer, as well as Nigeria and Venezuela, among other countries, about long-term ethanol export contracts. However, Japanese officials have delayed finalizing any contracts as they wait for more guarantees that Brazil will be able to furnish the biofuel without weather hitches or supply problems. If a contract is achieved, however, Petrobras has estimated that Japan could import between 1.8 and 6bn li/yr of ethanol, depending on whether the government mandates a 3% or 10% mix of ethanol in its gasoline. By contrast, Brazil exported a total of 3.4bn li in 2006, of which less than 7%, or 225.4m li, went to Japan, according to Agricultural Ministry data. Petrobras and Mitsui are also understood to be planning to take to take minority stakes in Brazilian ethanol distilleries. Petrobras so far sells ethanol both domestically and abroad, but doesn't produce it. Brazil is the world's top sugar producer and exporter, and is also the world's second-largest ethanol producer after the US.