Consortium secures TAG for US$8.6b

A consortium led by ENGIE has won the bidding process for a majority shareholding in Transportadora Associada de Gás S.A. (TAG).

Comprising ENGIE S.A, ENGIE Brasil Energia and la Caisse de dépôt et placement du Québec, the consortium’s offer of US$8.6 billion will score it 90 per cent of TAG, which is the largest natural gas transmission owner in Brazil.

Petrobras will maintain a 10 per cent equity stake.

TAG assets consist of approximately 4,500 km of gas pipelines across Brazil, equating to 47 per cent of the South American nation’s entire gas infrastructure.

ENGIE’s ownership of the company, both directly and indirectly through Engie Brasil Energia, will amount to 49.3 per cent, with the company to become the industrial partner for TAG and manage the asset after the closing of the transaction.

ENGIE CEO Isabelle Kocher said the acquisition was a key step in the company’s future goals.

“Our acquisition of TAG is a significant milestone for ENGIE in Brazil, a key market for the Group where we have been present for 23 years,” she said.

“It is fully aligned with ENGIE’s strategy to become the leader of the zero-carbon transition, supporting Brazil in the decarbonization of its energy mix.

“It will also enable the group to build on its infrastructure expertise while diversifying its network activities and seizing opportunities in growing markets.”

The transaction is conditional upon the approval of the relevant governance bodies of Petrobras and the Brazilian and European Union anti-trust authorities.

For more information visit the ENGIE website.

If you have a project you would like featured in Pipelines International contact Assistant Editor Chloe Jenkins at cjenkins@gs-press.com.au

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