A rigorous free energy model for ternary fluid flows with density ratio up to of order $O(10^3)$ is presented and implemented using the entropic lattice Boltzmann scheme. The model is thermodynamically consistent and allows a broad range of surface tension ratios, covering both partial wetting states where Neumann triangles are formed, and full wetting states where complete encapsulation of one of fluid components is observed. We further demonstrate that we can capture the bouncing, adhesive and insertive regimes for the binary collisions between immiscible droplets suspended in air. Our approach opens up a vast range of multiphase flow applications involving one gas and several liquid components.