This acquisition follows the prior acquisition by ENGIE and CDPQ, in June 2019, of a 90% shareholding in TAG. TAG’s capacity is fully contracted on the basis of ship-or-pay clauses with an average residual duration of 11 years and will be regulated afterwards.
Claire Waysand, interim CEO of ENGIE said: “We have been operating in Brazil for almost 25 years with a long-term investment focus. This acquisition allows us to invest further in an asset we know, capitalizing on our expertise in networks, in a key country for ENGIE.”
TAG is the largest natural gas transporter in Brazil with a gas pipeline infrastructure of approximately 4,500 km, located along the seaboard of the southeast and northeast regions as well as a further stretch connecting Urucu to Manaus (AM). The network represents 47% of the country’s entire gas infrastructure, and has further development potential such as network extension, additional connections, gas storage development and green gases transport.
1 ENGIE new ownership of the asset will be structured through a 32.5% stake held via a 100% direct subsidiary of ENGIE and through a 32.5% stake held by ENGIE Brasil Energia (resulting in net ENGIE ownership of 54.8% given ENGIE Brazil minority interests)