EIG Global Energy Partners has agreed to sell its approximately 27.5% stake in Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) to Fluxys, a Belgium-based natural gas transmission system operator.
TBG owns and operates the Brazilian section of the Bolívia-Brazil pipeline (GASBOL), which is a nearly 2,600km natural gas pipeline system, including the main natural gas transportation network in the south of Brazil.
The pipeline system spans the states of Mato Grosso do Sul, São Paulo, Paraná, Santa Catarina, and Rio Grande do Sul in Brazil.
EIG said that the GASBOL has capacity to transport approximately 30 million cubic meters of natural gas per day (1.1 billion cubic feet per day) from Bolivia and Brazil’s offshore pre-salt fields to key markets in Brazil.
EIG CEO 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 southeastern part of the country.
“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 expects the transaction to be concluded in approximately two months, subject to satisfaction of certain conditions precedent.
Furthermore, the two companies EIG and Fluxys also intend to explore further strategic cooperation in Brazil’s gas infrastructure market.
EIG has also invested in Gas Natural Açu (GNA), an operational LNG terminal, natural gas and power hub with 6.4GW of gas-fired power under development at the Port of Açu.
In 2018, Fluxys and its consortium partners acquired a 35.76% stake in Dunkerque LNG, the owner of the LNG terminal in Dunkirk in France, from EDF and Total.
