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Bloomberg
Petroleo Brasileiro SA agreed to sell its 90 percent stake in a natural gas pipeline unit to France’s Engie SA and Canadian pension fund Caisse de Depot et Placement du Quebec for $8.6 billion.
Engie and Caisse prevailed after multiple rounds of bidding for the unit, known as TAG. It is the biggest-ever single asset sale for Petrobras, whose new CEO has sought to speed divestitures that began years ago, when the state-run energy giant briefly became the world’s most indebted oil company.
Engie has been selling oil and coal assets in recent years to fund investment in wind and solar power, energy efficiency services, and gas and power networks, betting that they offer faster growth prospects and more predictable returns. The company, which operates the biggest part of France’s gas network, has said that it could use its expertise to develop TAG, which should benefit from growing demand for the fuel in Brazil.
Transportadora Associada de Gas, as TAG is also known, operates a 2,800-mile (4,500-kilometer) pipeline network that spans 10 states in northern Brazil. The sale price includes $800 million to pay TAG’s debt to Brazil National Development Bank, or BNDES, the company said in a statement.