Brazil's TAG, Eneva to connect LNG pipeline to private terminal in October
Brazilian energy firm TAG plans to start operations of a new pipeline section in October that will connect the country's largest pipeline network to Eneva's liquefied natural gas (LNG) storage terminal in Sergipe state.
The project is seen as a milestone by the companies, as it would make Eneva the first private firm to have an LNG terminal connected to Brazil's natural gas transport network. State-run Petrobras owns the other units currently in operation.
TAG CEO Gustavo Labanca said on Tuesday that 350 MM reais ($62.67 MM) were invested in the new 25-km (15.5-mi) pipeline section, which will be able to transport as much as 14 MMft3d of LNG.
Labanca said the move will provide the country's national LNG supply chain with greater flexibility and security.
TAG, which is backed by French company Engie and Canadian fund Caisse de depot et placement du Quebec (CDPQ), was sold by Petrobras in 2019.
It expects to invest some 5.2 B reais in expansion and maintenance efforts in Brazil by 2028, Labanca said.
The pipeline section in the northeastern state of Sergipe still requires approval from regulator ANP and a state environmental license. Its estimated capacity represents around 10% of all natural gas production in Brazil.
Eneva's so-called Sergipe Hub has a floating natural gas storage and regasification unit with capacity for 21 MMft3d. It also includes a 1.6-gigawatt (GW) thermoelectric power plant, which uses some 6 MMft3d of LNG.
The project with TAG has enabled Eneva to move closer to new supply agreements for imported LNG. Eneva sees room to negotiate an extra supply of up to 10 MMm3d for new customers, CEO Lino Cancado said.
($1 = 5.5851 reais)
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