Page 8 - GLNG Week 07 2023

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Sergipe state to grant TAG tax break

for pipeline linking its network to

LNG terminal

BRAZIL TRANSPORTADORA Associada de Gás than other LNG import terminals along the Bra-
(TAG), Brazil’s largest natural gas transporter, zilian coast. Bringing gas transportation costs
State government will be granted a tax break for the construction down will allow the Sergipe terminal to attract
officials have said they of a pipeline that will connect its network to an “a significant portion of Brazil’s LNG imports,”
hope this discount LNG import terminal in the port of Sergipe. he said, according to Argus Media.
will reduce gas According to a report from Argus Media, the TAG has said it intends to build a 25-km
transportation costs Sergipe state government’s industrial develop- pipeline to link the terminal to its own network,
for the LNG terminal’s ment council approved plans for the tax conces- which extends for 4,500 km, crossing 10 states
future customers. sion on February 2. As a result of the council’s and serving 90 delivery points. The conduit is
decision, the terminal’s operator – Energos Infra- due to be completed in 2024 and will be capable
structure, a joint venture platform established of handling 14mn cubic metres per day, equiva-
by US-based New Fortress Energy (NFE) and lent to two thirds of the terminal’s capacity of 21
Apollo – will only have to pay 6.2% of the usual mcm per day.
ICMS tax on the pipeline project rather than the The Sergipe terminal is already being used
full rate. ICMS is similar to a value-added tax to import LNG for regasification and delivery
(VAT), Argus Media noted. to the Porto do Sergipe thermal power plant
State government officials have said they (TPP), a 1,593-MW facility in nearby Barra de
hope this discount will reduce gas transportation Coqueiros that consumes 6 mcm per day of gas
costs for the LNG terminal’s future customers. when operating at full capacity. The terminal is
Marcelo Menezes, executive secretary at Sergipe based on the Golar Nanook, a floating storage
state’s industrial and economic development and regasification unit (FSRU) chartered to Cen-
department, went further, saying that the tax trais Elétricas de Sergipe (CELSE), the owner of
break would make Sergipe more competitive the TPP. ™

P8 www. NEWSBASE .com Week 07 16•February•2023