ARACAJU, Brazil, July 24 (Reuters) - Brazilian energy

firm TAG plans to start operations of a new pipeline section in

October that will connect the country's largest pipeline network

to Eneva's liquefied natural gas (LNG) storage

terminal in Sergipe state.

The project is seen as a milestone by the companies, as it

would make Eneva the first private firm to have a LNG terminal

connected to Brazil's natural gas transport network. State-run

Petrobras owns the other units currently in

operation.

TAG CEO Gustavo Labanca told Reuters on Tuesday that 350

million reais ($62.67 million) were invested in the new 25-km

(15.5-mile) pipeline section, which will be able to transport as

much as 14 million cubic meters of LNG per day.

Labanca said the move will provide the country's national

LNG supply chain with greater flexibility and security.

TAG, which is backed by French company Engie and

Canadian fund Caisse de depot et placement du Quebec (CDPQ), was

sold by Petrobras in 2019.

It expects to invest some 5.2 billion reais in expansion and

maintenance efforts in Brazil by 2028, Labanca said.

The pipeline section in the northeastern state of Sergipe

still requires approval from regulator ANP and a state

environmental license. Its estimated capacity represents around

10% of all natural gas production in Brazil.

Eneva's so-called Sergipe Hub has a floating natural gas

storage and regasification unit with capacity for 21 million

cubic meters per day.

It also includes a 1.6-gigawatt thermoelectric power plant,

which uses some 6 million cubic meters of LNG per day.

The project with TAG has enabled Eneva to move closer to new

supply agreements for imported LNG. Eneva sees room to negotiate

an extra supply of up to 10 million cubic meters per day for new

customers, CEO Lino Cancado told Reuters.

($1 = 5.5851 reais)