In a significant development, the Terminal Gas Sul (TGS) liquefied natural gas (LNG) terminal in Santa Catarina has officially commenced operations with the arrival of the Floating Storage Regasification Unit (FSRU) Energos Winter. This milestone follows the execution of a definitive agreement between the operating company, NFE, and Petrobras in November 2023, securing the FSRU with an impressive capacity of 138,250 cubic meters.
Under the terms of the agreement, NFE will sub-charter the FSRU throughout the remaining duration of Petrobras’ charter, in collaboration with US-based Energos Infrastructure. Subsequently, NFE will directly charter the FSRU on a long-term basis with Energos.
The Terminal Gas Sul (TGS) is an offshore LNG import facility boasting a substantial capacity of approximately 6 million tonnes per annum and a maximum send-out of 500 million standard cubic feet per day (mmscf/day). The terminal is equipped with a 33-kilometer, 50.8-centimeter pipeline connecting it to the existing inland Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) pipeline.
Connected to the wider Brazilian gas market, the terminal plays a crucial role in supplying more than 3.5 gigawatts (GW) of power lacking firm, long-term gas supply contracts. Additionally, it serves over 300 trillion British thermal units (TBtu) of industrial and residential gas consumers in the southern region of Brazil.
Wes Edens, Chairman, and CEO of NFE, emphasized the significance of the TGS terminal, stating, “TGS is directly connected to more than 3.5 GW of existing power infrastructure that lacks firm supply agreements, making the terminal a key asset in Brazil’s evolving energy landscape.” Edens further highlighted NFE’s readiness to meet the growing demand, leveraging its vertically integrated portfolio of LNG assets and expertise, particularly in light of the numerous new power projects required to balance the grid in Brazil in the near term.