New Owners of TAG Will Invest 1 Billion Reais in the Gas Pipeline Network

Engie and the Canadian Fund CDPQ, Companies That Bought Petrobras’s TAG, Will Invest in the Gas Pipeline Network in the Next Five Years

After Acquiring the Associated Gas Transporter (TAG) from Petrobras, Engie and the Canadian fund CDPQ announced that they will invest around R$ 1 billion over five years in their gas pipeline network.
The CEO of TAG, Gustavo Labanca, stated that: “As the company spent almost two years in the sales process, there are a number of investments necessary to ensure the safety of the network, the integrity… We identified, during the due diligence process (of the TAG acquisition) some necessary investments. We are already preparing to make them. We are also conducting a more detailed analysis of the network to determine where we need to prioritize”.

Investment Plan

The investment plan will need to be submitted to ANP after it is prepared, and the operations director of TAG, Emmanuel Delfosse, said that: “We have a whole regulatory process with ANP that needs to be approved. Our business is a regulated tariff. All this investment will compose the tariff, and the regulator must be consulted”.

The director of TAG further added that the expansion investments in the gas pipeline network depend on market demand but will be made with great pleasure by the company.

Regarding Petrobras’s commitment, made with CADE to exit the gas transportation and distribution market, the CEO of TAG stated that the new shareholders are indeed interested in acquiring the 10% that remains with Petrobras.

Petrobras has not yet officially commented on the sale of the 10% of TAG.

“Obviously, whoever has 90% ownership is interested in buying the remaining 10%. We will look at it very carefully. It is a decision for the shareholders”, said Labanca.

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