Caisse de Dépôt on team buying Petrobras’ gas pipeline unit for $9 billion: report



RIO DE JANEIRO/PARIS — Brazilian state-run oil company Petroleo Brasileiro SA has agreed to sell its TAG natural gas pipeline unit to a consortium led by France’s Engie SA for roughly US$9 billion, Bloomberg News reported on Friday, citing a source.

The Engie consortium, which also includes Canada’s Caisse de Dépôt e Placement du Québec, beat out two competing consortia, led by Itausa Investimentos Itau SA and EIG Global Energy Partners with Mubadala Investment Co, respectively, Bloomberg said, citing a source with knowledge of the matter.

Petrobras, as the company is widely known, and Engie declined to comment.

Sources told Reuters last month that Petrobras was accepting the final round of bids for its TAG gas pipeline unit on April 2, which was expected to bring in several billion dollars and will likely be the company’s largest divestiture in Petrobras’ asset sales program.

The oil company had been targeting a sale of a 90 per cent stake in TAG, which operates about 2,800 miles (4,500 kilometres) of gas pipelines.

© Thomson Reuters 2019


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