The governor of Santa Catarina, Carlos Moisés, signed last month the Declaration of Public Utility (DUP) for the implementation of the Gas South Terminal (TGS), a Golar Power project, in Babitonga Bay, in the municipality of São Francisco do Sul. Considered an essential infrastructure work for public sector services, TGS will benefit the population with an increase of around 50% in the supply of natural gas to the South region. Currently, the only source of supply for the State is concentrated in the Bolivia-Brazil gas pipeline which, according to SCGás, has already reached the limit of its capacity.

“Santa Catarina is on the right track. This is the seed of a process that will result in the improvement of manufacturing conditions in our state. The Government understands that  this projetct is extremerly importante because once the project is up and running the tax of gas consumption will stay in Santa Catarina, and no longer be paid in other states. As a result, we will also have more productivity, more jobs and an increase in revenue,” said the governor. Moisés also informed that this investment will increase the competitiveness of the companies from Santa Catarina “and will bring more energy security, with the creation of a alternative source.”

Fiesc president Mario Cezar de Aguiar said that signing the decree is a fundamental step for the state’s economy. “Gas is an extremely important input for the industry and for the development of Santa Catarina,” he said. According to Aguiar, today, the gas comes from Bolivia and, with this project by Golar Power, it will enter the state directly.

After the decree was signed, some more bureaucratic steps still need to be overcome to start the works. The next one will be the issuance of the installation license by the Instituto do Meio Ambiente and then the construction authorization by the National Petroleum Agency (ANP). The expectation of Golar Power is that the two stages will be completed in the first half of 2021. Then, it would start the construction itself, which should take 15 to 18 months. Thus, the company works with the possibility of starting operations at the end of the year 2022.

For the president for Latin America of Golar Power, Celso Silva, the choice for Santa Catarina came after more than a year of studies. He recalled that the State has a vigorous and innovative industry, with high gas consumption. “We understand that here would be the best location from a logistical and operational point of view. We will guarantee supply for the local consumption with an input that will help society to reduce greenhouse gas emissions and also supply other regions of the country”.

Articulation

SCPar started the licensing process for this new gas terminal in 2019. Since then, all the necessary and relevant bodies for this process have been working together to rigorously assess the impacts and benefits; and in a sustainable way, allow this R $ 380 million investment to be made.