ENGIE and CDPQ acquire remaining 10% of TAG in Brazil

Subscribe to our newsletter and get the latest news and business opportunities in your inbox

ENGIE announced that its joint bid with Caisse de dépôt et placement du Québec (CDPQ) has been successful in acquiring the remaining 10% stake in Transportadora Associada de Gás S.A. (TAG), as part of the divestment process conducted by Petrobras. The closing value of the transaction is BRL 1.0 billion (US$ 191.26 million). With this acquisition, ENGIE’s total equity holdings in TAG increase to 65% (of which 32.5% is held by ENGIE Brasil Energia) while CDPQ will hold the remaining 35%.

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 afterward.

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 gas transport. 

Share this update