TAG is the gas transmission operator responsible for the main transport corridor connecting Cabiunas, Brazil (Point I), the biggest gas injection point in the country, located from Rio de Janeiro to Ceara (Point O). TAG will play a central role in integrating new domestic gas supply from the Sergipe Alagoas deepwater project (SEAP), liquefied natural gas (LNG) entry points, and demand centers across Brazil’s Southeast and Northeast regions.

The ECOMP Itajuipe compressor station proposal addresses a bottleneck in TAG’s pipeline network that limits gas flow from Southeast to Northeast above the Catu station (K). Installing a compressor on the Cacimbas–Catu (GASCAC) pipeline would add 3 million cubic meters per day (MMcmd) of transfer capacity, raising total capacity from 9.4 to 12.4 MMcmd, enabling domestic gas from the Southeast to replace LNG imports in the Northeast. Currently, LNG imports at Bahia LNG are necessary for the region's high gas power demand. The project aligns with Raia's expected supply from 2028 and is needed until the Sergipe-Alagoas project begins in 2030. Estimated capex is about $150 million.

Since 2024, TAG has been connected to Eneva’s LNG terminal in Sergipe (point L) via a dedicated pipeline, adding a private LNG entry point to the grid. The $65 million project improves short-term supply flexibility in the Northeast and gives Eneva’s Porto de Sergipe I power plant the option to switch between LNG and grid gas based on pricing.

TAG is also evaluating the Gasoduto dos Goytacazes (GASOG) project—a 45.5 km pipeline linking GNA’s LNG terminal at Porto do Acu to the GASCAV system in Campos dos Goytacazes. With an initial bidirectional capacity of 12 MMcmd (expandable to 18 MMcmd), the $190 million project would enable the 3 GW thermal complex at Acu to tap grid gas and unlock new supply sources to meet future industrial demand.

On the supply side, the SEAP development in the Sergipe-Alagoas Basin includes two FPSO-based systems (SEAP I & II). Gas will reach shore via the Rota SEAP offshore pipeline, pre-processed for network injection. While the full pipeline could handle up to 18 MMcmd, only SEAP II—bringing 10 MMcmd—has reached FID. SEAP I, still awaiting FID, could add another 6–7 MMcmd. TAG has already planned the onshore connection, with start-up aligned to Petrobras’ timeline.

Further north, the Veredas project aims to expand capacity into Ceara through a phased duplication of the Nordestao pipeline. Phase I would add 4 MMcmd between Pernambuco and Ceara (points M to O), easing current bottlenecks. Integration with SEAP gas could further meet growing demand in Ceara. Higher volumes will require upstream reinforcements from Cabiúnas or Bahia. Project execution depends on demand commitments, potentially supported by reactivating two thermal power plants in the 2026 LRCAP auction. Estimated Phase I capex is $500 million.

In parallel, TAG and Origem Energia have signed a non-binding agreement to build Brazil’s first gas storage facility using depleted reservoirs in the Alagoas Basin (point L). Initial storage capacity is planned at 100 million cubic meters per year, expandable to 500 million cubic meters, with investment reaching up to $200 million over several phases.

Finally, gas processing capacity is set to grow with PetroReconcavo’s UPGN Miranga in Bahia. The plant will start at 0.95 MMcmd (expandable to 1.5 MMcmd), with operations expected by July 2027 and FID in 2026. With $65 million in capex, the project offers an alternative to Petrobras’ Catu facility, whose shared processing agreement expires in June 2027, giving PetroReconcavo more control over its output.

NTS strengthens network amid declining Bolivian imports and rising pre-salt supply

NTS continues to play a central role in connecting Brazil’s main gas production hubs to its largest consumption centers, Rio de Janeiro and Sao Paulo, together representing over 50% of national gas demand in 2024.

The recently completed GASBEX pipeline links southern Minas Gerais to the national grid via the GASCAR system, delivering up to 0.3 MMcmd to industrial consumers in Extrema and nearby areas. Spanning 28 km with a $40 million investment, the project supports GASMIG’s expansion and helps secure long-term industrial gas demand growth.

The Corredor Pré-Sal Sul aims to expand capacity between Rio and Sao Paulo by duplicating pipelines and adding compression. Once fully developed, it could enable up to 40 MMcmd of interstate flow and 25 MMcmd to TBG via Paulínia (point B), helping offset declining Bolivian imports. However, the first step—the Japeri compression project—has yet to reach FID and is critical to avoiding a potential supply shortfall by 2027. The full corridor remains on hold, with an estimated $1.5 billion capex.

The GASINF project proposes a 100-km bidirectional link from Porto do Acu to the NTS network, enabling either injection of LNG into the grid or delivery of domestic gas to power plants at the port. The $380 million project complements ongoing discussions around an onshore LNG terminal and supports Acu’s ambitions as a gas and energy hub.

A separate project would connect the Sao Paulo LNG terminal to the gas grid. It’s currently under ANP regulatory review and would help offset declining domestic supply in the region by enhancing access to imported LNG and market liquidity for operator Edge.

In January 2025, TAG and NTS completed a new $9 million bidirectional interconnection in Macaé (point I), improving operational flexibility and allowing flows of 2–5 MMcmd. A proposed compressor station (ECOMP Macaé) could boost inter-network flows to 20 MMcmd, but has yet to be approved.

Lastly, the Equinor-operated Raia project will bring up to 16 MMcmd of pre-salt gas from the Campos Basin to the network by 2028 via a 200-km offshore export pipeline. Once operational, processed gas will flow to the Cabiúnas point, supporting domestic supply security and enhancing specification control.

TBG’s supply security hinges on third-party infrastructure decisions

TBG operates the GASBOL corridor, Brazil’s key long-distance gas transmission system linking Bolivian imports to demand centers in the South and Southeast. While new trunklines are not planned, TBG is focusing on optimizing existing infrastructure to boost utilization and diversify supply.

One key initiative is the integration of biomethane hubs, such as Sao Carlos and Porecatu, allowing up to 1 MMcmd of renewable gas to be injected directly into the network. The Sao Carlos hub alone, at an estimated cost of $27 million, will consolidate dispersed biomethane production from Sao Paulo—leveraging nearby sugarcane bagasse—to a single entry point upstream of the Sao Carlos compression station.

However, the withdrawal of New Fortress Energy’s regasification unit from the Terminal Gas Sul has reduced LNG injection options. With Bolivian imports declining to 10–14 MMcmd in 2025 and Argentine imports limited to 0.4 MMcmd/month, alternative sources are insufficient to close the supply gap.

To address this, a new cross-border pipeline from Argentina to Brazil is being proposed, running from Uruguaiana to Triunfo (point D), where it would connect to TBG’s existing network. Estimated at $1.7 billion, the project could transport up to 15 MMcmd but requires Argentina to expand its own pipeline capacity from Neuquén and secure long-term supply contracts with Brazilian buyers. TGN has presented a base case scenario of 10 MMcmd in gas exports to Brazil across multiple routes.

Interested in learning more about our variety of solutions? Explore our offerings here.

Vinicius Romano
Vice President, Gas & LNG Research
vinicius.romano@rystadenergy.com

Gabriela Sanches
Analyst, Gas & LNG Research
gabriela.sanches@rystadenergy.com

Marina Siqueira
Analyst Intern, Gas & LNG Research
marina.siqueira@rystadenergy.com