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Government Puts BRL 170 Million on The Table to Build 125 km Gas Pipeline in Brazil That Will Supply The World’s Largest Pulp Mill

Written by Alisson Ficher
Published on 11/02/2026 at 21:07
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Billion-Dollar Investment in Energy and Logistics Infrastructure Promises to Transform Inocência with New 125 km Gas Pipeline, Strengthening Renewable Generation and Advancing the World’s Largest Single-Line Pulp Project, Connecting Industry, Railway, and External Market.

The Government of Mato Grosso do Sul announced a gas pipeline of 125 kilometers between the connection of the Bolivia-Brazil Gas Pipeline (Gasbol), in Três Lagoas, and Arauco Brazil’s unit in Inocência, with an estimated investment of R$ 170 million and a schedule until August 2027.

The service order was signed in Inocência by Governor Eduardo Riedel during a ceremony related to the Sucuriú Project, with the participation of Secretary Jaime Verruck, MSGás President Cristiane Schmidt, and Arauco Brazil President Carlos Alberto Altimiras.

125 km Gas Pipeline and Construction Schedule

According to the state government, the project plans to use carbon steel pipes with a nominal diameter of eight inches, planned to start in April, and an estimated generation of 400 to 500 direct jobs during the implementation phase, concentrating assembly and logistics activities along the route.

The operation has been designed to occur in stages, with increased capacity as needed by the construction site and the entry of equipment, and the official forecast is for inauguration in August 2027, when the flow begins at a higher level.

MS invests R$ 170 million in a 125 km gas pipeline to supply Arauco's factory and generate up to 556 MW of clean energy in Inocência.
MS invests R$ 170 million in a 125 km gas pipeline to supply Arauco’s factory and generate up to 556 MW of clean energy in Inocência.

In the first phase after inauguration, the reported capacity is up to 130 thousand cubic meters per day, with an increase in the following months to up to 280 thousand cubic meters daily, a volume indicated as sufficient to meet demand during industrial implementation.

Once the construction phase is over, the projection released by the government is that, starting in July 2028, the gas pipeline will begin operating at a stable rate of 50 thousand cubic meters per day, with supply sized for the regular operation of the complex.

Clean Energy Generation and Sucuriú Project Numbers

In addition to the gas used to support construction and operation, energy generation is highlighted as one of the pillars of the Sucuriú Project, utilizing biomass associated with the industrial process, a topic that the company and state authorities have emphasized in public agendas.

In an interview attributed to Leonardo Crociati, Executive Project Manager of Sucuriú, a production of 556 MW was mentioned, with 200 MW intended for export, and he stated that this volume would correspond to the consumption of a city of 800 thousand inhabitants.

On the other hand, previous official communications from the state government have cited generation of more than 400 MW, with about 200 MW focused on internal consumption, indicating that different publications address numbers in distinct scales and cuts, without altering the central idea of energy surplus.

“This volume is sufficient to supply a city of 800 thousand inhabitants”, Crociati stated.

Riedel also associated the package of projects with the profile of the state matrix, stating that Mato Grosso do Sul has more than 94% of energy generation from renewable sources and reiterating the goal of carbon neutrality by 2030, in remarks recorded during the event.

YouTube Video

Jobs, Railway, and Economic Impact in Inocência

The Sucuriú Project is presented as the largest single-line pulp factory in the world, with an investment of US$ 4.6 billion, estimated at around R$ 25 billion, an annual capacity of 3.5 million tons, and a plan to begin operations by the end of 2027.

At the construction site, Arauco reported that the current workforce is around 9,500 workers, with a forecast to reach 14,000 at the peak of construction, a level that exceeds the municipality’s population, a fact often cited to assess local impact.

The detailed number of permanent jobs varies according to the reporting source, but the state government has indicated an expectation of around 6,000 direct and indirect fixed posts after operations begin, while reports from technical visits describe distribution among industry, logistics, and forestry.

To transport the production, the planned logistics includes a railway branch launched as part of the same set of investments, with a disclosed extension of 47 kilometers, connecting the project area to the railway network heading towards the Port of Santos in São Paulo.

The railway structure is treated as a key piece to bring pulp to the external market, considering the projected annual volume, and the company has also disclosed that the plant will occupy approximately 3,500 hectares along MS-377, in an area served by new access works.

With the start of operations at the Inocência factory, the state government has stated that Mato Grosso do Sul is enhancing its relevance in the sector, as part of the local industrial strategy combines planted forests, energy infrastructure, and logistical corridors to cater to exports and the internal market.

By tying together the gas pipeline, industrial site, and railway in the same schedule, the state management hopes that the arrival of gas and the expansion of transportation capacity will reduce bottlenecks during peak construction and provide predictability for the energy consumption of the complex.

If the gas pipeline is delivered on time and the factory meets the operational schedule, what will change first in the life of Inocência: the availability of jobs, the pressure for housing and services, or the energy and transportation infrastructure that comes to stay?

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Valdinei Martins
Valdinei Martins
16/02/2026 09:55

Trabalho na Auxter Máquinas, sou consultor de máquinas linha amarela, essa obra será terceirizada? Como saber quais empresas devem executar o trabalho para ofertar minhas máquinas?

Escavadeira Hidráulica
Pá Carregadeira
Mini escavadeiras entre outros

67996960106 – Valdinei Martins

Sebastião
Sebastião
13/02/2026 21:20

Não quero ver propaganda chinesa no meu celular

Virgilio
Virgilio
13/02/2026 05:50

É um investimento público numa obra particular? Para dar emprego a 500 ou 600 pessoas? Os vereadores permitiram isso? Os deputados permitiram isso? O MP permitiu isso?
E se depois de um tempo a empresa fechar as portas? Qual a garantia de retorno desse investimento pela empresa?

Alisson Ficher

Jornalista formado desde 2017 e atuante na área desde 2015, com seis anos de experiência em revista impressa, passagens por canais de TV aberta e mais de 12 mil publicações online. Especialista em política, empregos, economia, cursos, entre outros temas e também editor do portal CPG. Registro profissional: 0087134/SP. Se você tiver alguma dúvida, quiser reportar um erro ou sugerir uma pauta sobre os temas tratados no site, entre em contato pelo e-mail: alisson.hficher@outlook.com. Não aceitamos currículos!

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