Brazil’s TAG to buy linepack gas from Galp

Brazil’s TAG to buy linepack gas from Galp

Sao Paulo, 19 January (Argus) — Brazilian pipeline TAG, which ships natural gas along the northeast coast between Rio de Janeiro and Ceará state, agreed to purchase linepack gas to pressurize the pipeline system from Portuguese oil and gas company Galp.

Galp agreed to deliver 13mn m³ to fill the TAG pipeline for a price of about $18/mmbtu. The total transaction is valued at R48.8mn ($8.9mn) and the gas must be delivered by the end of this month.

Galp was awarded the contract in a TAG open season conducted at the end of 2021. Prior to Brazil's market opening, the linepack gas was supplied by Petrobras.