US-based EIG bids on Brazilian gas pipeline units: press
US equity firm EIG Global Energy Partners made a substantial bid to buy two gas pipeline units from Brazilian energy company Petrobras, the Reuters news service reported August 25.
Reuters relied on “a source with direct knowledge of the matter” to report that EIG made a “binding offer worth several hundred million dollars on Monday” for pipeline units TBG and TSB.
Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG) manages the Brazilian end of the Bolivia–Brazil gas pipeline, the longest natural gas pipeline in South America. The 3,150km-long pipeline has a maximum capacity of 390bn ft3/y.
Transportadora Sulbrasileira de Gas (TSB) is in charge of two smaller gas pipeline networks near the border of Argentina and Uruguay.
EIG joined Fluxys Belgium and Canada’s Enbridge in submitting a non-binding offer for those pipelines in May, Reuters reported. EIG’s offer this time was independent.
Known officially as Petroleo Brasileiro, the company last month agreed to sell a 51% interest in gas distribution holding company Gaspetro for $400mn to Compass, a subsidiary of Brazilian energy group Cosan.
Gaspetro has interests in 19 gas distribution companies operating 10,000 km of pipeline across Brazil that serve more than 500,000 customers. Compass, Brazil's largest gas distributor, has a 19,000-km network serving 2.1mn customers in 94 municipalities in the state of Sao Paulo.
Petrobras is in the midst of a sweeping divestment programme, aimed at raising cash from the sale of non-core upstream, midstream and downstream assets to pay down its debts and invest more in deepwater oil projects.