EIG Global Energy Partners, an institutional investor in the global energy sector, has signed a definitive agreement to sell a nearly 27.5% stake in Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), a major natural gas pipeline operator.
Belgium-based independent gas infrastructure group Fluxys will acquire the minority stake in the pipeline operator for an undisclosed sum.
TBG owns and operates the Brazilian section of the Bolívia-Brazil pipeline (GASBOL) system stretching around 2,600km.
GASBOL is capable of transporting up to 30 million cubic metres per day to key Brazilian markets.
The deal is expected to close in around two months, subject to satisfaction of certain conditions.
EIG CEO R Blair Thomas said: “We are thrilled to have reached agreement with Fluxys for the sale of our interest in TBG. It has been a privilege to support the growth and development of GASBOL, critical infrastructure that delivers natural gas to key markets in Brazil, including Sao Paulo and the industrial regions in the south-eastern part of the country.
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By GlobalData“This investment underscores our dual commitment to supporting growth and development in this important region of the world while creating value for our investors. Today’s sale positions the EIG portfolio for additional opportunities in Brazil, and we look forward to partnering with Fluxys where possible.”
EIG-managed funds committed more than $2bn for energy-related infrastructure projects in Brazil in the last ten years.
According to a Reuters report, the divestment will help the company in allaying antitrust issues as it seeks to bid for majority stake in the pipeline owned by Brazilian state-run oil company Petrobras.