Petrobras offloads gas pipeline to Engie as Brazilian firm looks to cut debt
A consortium led by Engie has sealed the purchase of Petrobras’ Tag natural gas pipeline arm for $8.6bn (£6.6bn), in a move which helps Petrobras tackle its debt pile.
Engie said this morning a consortium with Canadian institutional investor Caisse de Depot et Placement du Quebec (CDPQ) had made a successful offer for a 90 per cent stake in Tag.
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Engie’s shares rose 0.71 on the Euronext stock exchange this morning on the announcement.
The French utility company said buying the unit would provide a steady profit stream, with Tag making up around 47 per cent of Brazil’s entire gas infrastructure.
“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,” said Engie chief executive Isabelle Kocher.
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“It is fully aligned with Engie’s strategy to become the leader of the zero-carbon transition, supporting Brazil in the decarbonisation of its energy mix.”
Petroleum giant Petrobras’ chief executive Roberto Castello Brance has been looking to offload assets in recent months, in a bid to cut debt and shift focus to exploration and production.
"We need to raise returns for shareholders, and fast," Branco said in a March interview.