Petrobras completes sale of stake in gas carrier to Engie Brasil and Canadian fund CDPQ

Petrobras concludes the process of selling a 10% stake in TAG, Transportadora Associada de Gás SA, to the Engie/CDPQ group

This Monday (20/07), Petrobras agreed to sell its remaining 10% stake in the gas pipeline company Transportadora Associada de Gás (TAG) to Engie Brasil and the Canadian investment fund Caisse de Depot et Placement du Quebec ( CDPQ), according to Reuters.

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According to Engie, the transaction was worth 1 billion reais (US$187,5 million), and follows last year's US$8,6 billion sale by Petrobras of the other 90% of TAG to the same group.

In a note, Petrobras said that the agreement is in line with its “portfolio optimization” strategy, improving its capital allocation and maximizing shareholder value.

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Engie Brasil, the Brazilian subsidiary of the French Engie SA (ENGIE.PA), said in a statement that the 1 billion reais were paid in full to Petrobras on Monday (20).

Privatization secretary Salim Mattar said the deal is further evidence of the state reducing its presence in key sectors and paving the way for more competition.

“The transaction represents another important milestone for opening up the natural gas sector in Brazil and is in line with the company's portfolio optimization strategy and the government's policy of privatization and economic liberalization,” tweeted Mattar.

Divestment of Petrobras in the natural gas sector

At the beginning of this month of July, Petrobras started the binding phase of the sale process of its remaining 10% stake in Nova Transportadora do Sudeste (NTS).

The company had started the process of selling the 10% stake in NTS at the end of March. In 2017, the state-owned company sold a 90% stake in the carrier for over US$5 billion.

NTS is a natural gas carrier with pipelines in São Paulo, Minas Gerais and Rio de Janeiro and connections to a number of facilities, including the Brazil-Bolivia pipeline and TAG, according to Petrobras. The transport capacity is 158,2 million cubic meters per day.