Engie-Led Group Buys Remaining Stake in Brazilian Pipeline Firm
France's Engie and Canadian investment fund Caisse de Depot and Placement du Quebec (CDPQ) have bought the remaining 10% of Brazil's largest gas pipeline company TAG from state-owned Petrobras for reais 1bn ($187.5mn), Engie's Brazilian division reported on July 20.
Petrobras sold a 90% interest in TAG to Engie, its subsidiary Engie Brasil Energia and CDPQ last year, for $8.6bn. TAG controls 4,500 km of gas pipeline, representing 47% of Brazil's national grid. Its capacity is fully contracted on a ship-or-pay basis.
"We have been operating in Brazil for almost 25 years with a long-term investment focus," Engie Brasil CEO Mauricio Bahr commented. "This acquisition allows us to invest further in an asset we know, capitalising on our expertise in networks, in a key country for Engie."
Petrobras is on a major divestment drive, as it looks to pay off its debts, which grossed $87bn at the end of last year, and free up capital to invest in new deepwater oil projects. It has just reached a deal to sell a group of shallow-water fields off Rio de Janeiro to London-based Trident Energy for $365.4mn and a further $650mn in contingency payments.
The company also launched the binding phase of a tender earlier this month for its remaining 10% interest in gas pipeline firm Nova Transportadora do Sudeste, and wants to offload its 51% in gas distribution holding Gaspetro.