MSGás Will Design a 125 Km Gas Pipeline and Forecasts R$ 1.2 Billion in Revenue with Natural Gas Supply for New Arauco Factory in Inocência (MS).
MSGás, the natural gas company from Mato Grosso do Sul, announced the completion of the project for a new gas pipeline of 125 km, which will supply the future cellulose factory of Arauco in the municipality of Inocência.
The initiative, revealed this week, anticipates an investment of R$ 160 million and a supply contract for 20 years, with estimated revenue of R$ 1.2 billion starting in 2027.
The new branch will start from the compression station in Três Lagoas and will follow to the site of the industrial plant, accompanied by the routes of the highways MS-320 and MS-377.
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The bidding for the acquisition of the steel pipes was published in the Official Gazette, and proposals must be submitted by July 14.
MSGás Gas Pipeline is a Landmark for the State Energy Sector
MSGás CEO, Cristiane Schmidt, classified the project as a landmark in the advancement of the energy infrastructure of Mato Grosso do Sul.
She emphasized that the company is ready to meet the growing demand of the forestry sector, reinforcing the strategy of interiorization of natural gas in the state.
“This is the second strategic partnership established in the Cellulose Valley, adding to the partnership with Suzano in Ribas do Rio Pardo. We are also advancing in expanding CNG for cargo transport with sustainable corridors,” Schmidt highlighted.
New Arauco Factory Boosts Interiorization of Natural Gas
The construction of the Arauco factory, one of the largest Chilean companies in the cellulose sector, consolidates the importance of the State’s interior in the map of clean energy and industrial innovation.
The contract with MSGás strengthens the company’s presence in supplying natural gas for large enterprises.
According to MSGás’s Technical and Commercial Director, Fabricio Marti, the partnership represents a long-term strategic alliance. “We reaffirm our commitment to delivering high-value-added solutions. The new factory reinforces the State as a hub for sustainable development,” he stated.
Gas Pipeline May Benefit New Municipalities
In addition to supplying Arauco, the gas pipeline paves the way for future connections in the regions of Água Clara, Aparecida do Taboado, and the municipality of Inocência itself.
The expansion of the network reinforces MSGás’s expansion plan and strengthens the use of natural gas as an energy matrix in the interior.
The works are expected to begin in May 2026, with the possibility of creating opportunities for new industrial and logistical hubs along the route.
MSGás Already Serves More Than 24 Thousand Customers in MS
Currently, MSGás has a network of 530 km of gas pipelines, serving more than 24 thousand consumers in the residential, commercial, industrial, and transportation segments in Campo Grande and Três Lagoas.
With the new gas pipeline, the company advances its goal of making natural gas more accessible, sustainable, and competitive throughout the State.

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