Engie SA buys 90% of TAG pipeline unit from Petrobras

A consortium led by France’s Engie SA have won a bid conducted by Petrobras to buy a 90% shareholding in Transportadora Associada de Gás SA (TAG), a major gas pipeline unit owned by Petrobras in northern and northeastern Brazil, with a bid of US$8.6bn. The winning bid beat offers from a consortium led by EIG Global Energy Partners with Mubadala Investment Co, which offered the second highest bid, less than 1% below than Engie’s bid according to Reuters. A consortium led by Itausa Investimentos Itau SA also participated in the process.

TAG is the largest natural gas transmission network owner in Brazil, with assets consisting of 4,500 km of gas pipelines, the equivalent of 47% of the country’s entire gas infrastructure. The winning consortium is composed of ENGIE SA, ENGIE Brasil Energia and la Caisse de dépôt et placement du Québec (CDPQ). Engie will take 100% control of TAG’s operation and maintenance after the third year.

In September 2016, Petrobras sold Nova Transportadora do Sudeste gas network for US$5.2bn to Brookfield Infrastructure Partners LP, which outbid Engie SA.

? [PR] ENGIE-led consortium wins competitive bidding process in Brazil ?? for the acquisition of TAG.https://t.co/49vGAuWkkL

— ENGIE (@ENGIEgroup) April 8, 2019

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