Terminal Gas Sul (Southern Gas Terminal or TGS) Project is an offshore Liquefied Natural Gas (LNG) import terminal in Santa Catarina, Brazil. The project is owned by US-based energy infrastructure company New Fortress Energy.
The Final Investment Decision (FID) on the project was taken in 2021. Construction works commenced in November 2021. During the construction phase, it created between 500 and 800 jobs.
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Terminal Gas Sul entered commercial operations in the first quarter of 2024. The project was developed with a total investment of BRL383m (~$70m).
The terminal has an approximate capacity of 6 million tonnes per annum (mtpa) (300 TBtu) with a maximum send out of 500 mmscf/day. The opening is expected to bolster New Fortress Energy’s growth within the Brazilian power and gas markets.
Terminal Gas Sul LNG Location
The Terminal Gas Sul LNG Project is located in the southern part of Brazil in Babitonga Bay, Santa Catarina. The project is situated 300m off the coast of Brazil.
Terminal Gas Sul LNG Project Details
The Terminal Gas Sul LNG Project infrastructure includes an ocean terminal, an Energos Winter Floating Storage and Regasification Unit (FSRU), an overall 33km-long, 20-inch pipeline, and related infrastructure.
The pipeline connects the facility to the existing inland Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) pipeline.
The existing TBG pipeline exports LNG to the wider LNG market in Brazil.
The terminal includes all the necessary infrastructure to receive, store, regasify, and export natural gas. It receives gas via the methane carriers which is then transferred to Energos Winter FSRU via a ship-by-ship system.
Energos Winter can store 160,000 cubic metres of LNG.
The natural gas after undergoing regasification travels for about 2km in a pipeline below the bay bed and enters the OSPAR pipeline located in Itapoá.
Subsequently, a 31km long pipeline transports the gas over land to the connection point with Gasbol (Brazil-Bolivia Gas Pipeline) located in Garuva city.
The terminal can regasify 15 million cubic metres of LNG per day. Initially, 7 million cubic metres of LNG will be supplied to Santa Catarina, increasing the availability in the state by 3.6 times.
Terminal Gas Sul is expected to cater to more than 3.5GW of power infrastructure that does not have firm, long-term gas supply contracts and industrial and residential gas consumers in the south region of Brazil.
Key Contractors
An industrial engineering branch of OEC, Tenenge, constructed the gas terminal for New Fortress Energy. The company commenced work in November 2021.
The scope of works included detailed engineering, supply of goods, materials, and equipment, civil construction, electromechanical engineering, commissioning, and start-up of the project.
Tenenge commenced the piling for the FSRU anchoring terminal in October 2021 and completed it in March 2022.
Energos Winter was delivered by Energos Infrastructure.
Power Purchase Agreement
New Fortress Energy signed an agreement in December 2023 to acquire a 1.6GW Capacity Reserve Contract (PPA) from Ceiba Energy, a portfolio company of Denham Capital.
The agreement has a 15-year contract life and will contribute firm capacity payments of $280m per year.
NFE plans to transfer the PPA to new power assets connected to its existing Brazilian LNG terminals – Barcarena and Terminal Gas Sul.
About Energos Infrastructure
Energos Winter is owned by Energos Infrastructure, an international marine LNG infrastructure company by funds managed by Apollo (80%) and New Fortress Energy (20%).
Energos Infrastructure was formed in August 2022.
As of January 2024, the entity owns a total of 13 LNG infrastructure vessels which includes nine FSRUs, two Floating Storage Units (FSUs), and two LNG carriers.
The joint venture supplies critical infrastructure to countries of the world for delivery, storage, and regasification of LNG thereby, reducing their dependency on coal and oil and saving costs.
