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March 15, 2022

Petrobras nears agreement to sell Bolivia-Brazil gas pipeline to EIG

EIG could pay between $500m and $1bn for Petrobras' stake in Transportadora Brasileira Gasoduto Bolivia-Brasil.

Brazil’s Petrobras is nearing a deal to sell control of the Bolivia-Brazil natural gas pipeline to US-based private equity firm EIG Energy Partners, reported Reuters, citing three people with knowledge of the matter.

TBG operates the Brazilian section of the natural gas pipeline, known as Gasbol.

Gasbol is designed to transport up to 30 million cubic meters per day of natural gas from Bolivia, to consumer markets in Brazil.

The state-run Brazilian oil company expects to receive over $500m for its 51% stake in Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG).

It is anticipated that the bid for the pipeline may reach up to $1bn, based on the details of the negotiations.

The approximately 2,600km-long pipeline system, which is said to be south Brazil’s main natural gas transportation network, generated an operating profit of over $180m for its owners in the first nine months of 2021, the report says.

In 2021, EIG divested a stake of 27.5% in TBG to Fluxys Belgium. The sale was part of its efforts to remove a regulatory conflict that could have prohibited EIG from placing a bid for control of the pipeline project.

In October last year, Petrobras received more than $4bn of binding offers from two consortiums for the Albacora and Albacora Leste oil fields, offshore Brazil.

One of the consortiums included Enauta, 3R Petroleum, and EIG Global Energies while the other consisted of PetroRio, and Spain’s Cobra Group.

The concessions are located in the deepwaters of the Campos basin.

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