1. Home
  2. / Oil and Gas
  3. / TAG To Build New Gas Pipeline Linking Celse’s LNG Terminal to Its Gas Network
Location SE Reading time 3 min of reading

TAG To Build New Gas Pipeline Linking Celse’s LNG Terminal to Its Gas Network

Written by Ruth Rodrigues
Published on 09/06/2022 at 07:52
O acordo firmado entre as empresas prevê a ligação do terminal de GNL da Celse no estado de Sergipe à malha de gás da TAG com a construção de um novo gasoduto para o transporte do combustível entre as instalações das empresas
Foto: Celse/Divulgação
Seja o primeiro a reagir!
Reagir ao artigo

The Agreement Signed Between The Companies Provides For The Connection Of The LNG Terminal Of Celse In The State Of Sergipe To The Gas Network Of TAG With The Construction Of A New Pipeline For The Transport Of The Fuel Between The Installations Of The Companies

The Associated Gas Transporter (TAG) announced on Tuesday (06/07) the interconnection of the liquefied natural gas (LNG) terminal of Centrais Elétricas de Sergipe (Celse) to its gas network. Thus, a pipeline will be built for the transportation of the fuel, enabling TAG to market gas from the production of the Porto do Sergipe thermoelectric plant, located in the state of Sergipe and managed by the regional distributor.

New Contract Between Celse and TAG Provides For The Construction Of A Pipeline To Interconnect The LNG Terminal To The Gas Network Of The Transporter For The Marketing Of The Fuel

The owner of the Porto do Sergipe thermoelectric plant, Celse, confirmed the latest contract for a new venture with TAG on Tuesday. This involves the interconnection of the LNG terminal of the distributor to the gas network of the transporter, as a way to ensure greater efficiency in the marketing and transport of the fuel and to enable the development of new ventures with the production of the Sergipe thermoelectric plant over the coming years. 

Thus, the agreement between Celse and TAG provides for the construction of a new pipeline approximately 25 kilometers long and the respective access infrastructure, which will connect the LNG terminal to the company’s pipelines, ensuring the supply of the transporter’s gas network.

Moreover, Celse will also be responsible for the periodic payment of a fee for the connection between the facilities for a period of 30 years after the contract begins, with the aim of compensating part of the investments that TAG will make in the venture. 

With the construction of the new pipeline by TAG, the interconnection between the LNG terminal and the transporter’s gas network will allow the gas imported by Celse to be injected into the pipeline network and withdrawn at any other point in the national network. Additionally, TAG highlighted in a statement that the contract represents “yet another important advance in the process of opening and expanding the natural gas market in Brazil, materialized by the principles of the New Gas Law.”

Interconnection Of The LNG Terminal Of Celse To The TAG Network Is Part Of Eneva’s Plan To Become A Trader Of This Fuel Over The Next Few Years

The entire project for the construction of the pipeline to interconnect the terminal of the Sergipe company to the gas network of the transporter is part of Eneva’s expansion plan in the natural gas sector in Brazil. This is because the company signed a contract last week for the purchase of Celse and, with that, will hold the assets and new ventures that will be carried out by the Sergipe distributor. 

Now, Eneva intends to enter the national natural gas marketing market, and the project to interconnect the terminal to TAG’s gas network is part of the initiative to expand in the LNG sector. However, the negotiation does not include the acquisition of the LNG terminal, which supplies the Porto de Sergipe I power plant (1.593 GW), but the asset will remain leased to the thermoelectric plant until 2044, thus ensuring the necessary supply of natural gas for the venture. 

Finally, it was also announced that the total investment planned for the construction of the new pipeline and interconnection of the facilities is R$ 300 million and is expected to be completed in 2024, giving a new growth perspective to both companies after the start of operations.

Ruth Rodrigues

Formada em Ciências Biológicas pela Universidade do Estado do Rio Grande do Norte (UERN), atua como redatora e divulgadora científica.

Share in apps