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Brazil's TAG, Eneva to link LNG pipeline to private terminal in October

Brazilian energy firm TAG plans to start operations of a brand-new pipeline section in October that will connect the nation's largest pipeline network to Eneva's melted natural gas (LNG) storage terminal in Sergipe state.

The job is viewed as a turning point by the business, as it would make Eneva the very first personal company to have a LNG terminal connected to Brazil's gas transportation network. State-run Petrobras owns the other systems presently in operation.

TAG CEO Gustavo Labanca informed on Tuesday that 350 million reais ($ 62.67 million) were purchased the new 25-km ( 15.5-mile) pipeline area, which will have the ability to carry as much as 14 million cubic meters of LNG daily.

Labanca stated the relocation will provide the nation's national LNG supply chain with higher flexibility and security.

TAG, which is backed by French business Engie and Canadian fund Caisse de depot et placement du Quebec (CDPQ), was sold by Petrobras in 2019.

It anticipates to invest some 5.2 billion reais in growth and maintenance efforts in Brazil by 2028, Labanca said.

The pipeline section in the northeastern state of Sergipe still needs approval from regulator ANP and a state environmental license. Its approximated capability represents around 10% of 100% natural gas production in Brazil.

Eneva's so-called Sergipe Hub has a drifting natural gas storage and regasification unit with capability for 21 million cubic meters per day.

It likewise consists of a 1.6-gigawatt thermoelectric power plant, which uses some 6 million cubic meters of LNG daily.

The task with TAG has made it possible for Eneva to move better to new supply agreements for imported LNG. Eneva sees space to work out an extra supply of up to 10 million cubic meters daily for brand-new customers, CEO Lino Cancado informed .

(source: Reuters)