EIG Agrees to Sell Minority Interest in Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) to Fluxys
RIO DE JANEIRO and WASHINGTON, D.C. – EIG Global Energy Partners (“EIG”) today announced it has signed a definitive agreement with Fluxys for the sale of EIG’s approximately 27.5% stake in Transportadora Brasileira Gasoduto Bolívia-Brasil (“TBG”). TBG owns and operates the Brazilian section of the Bolívia-Brazil pipeline (“GASBOL”), an approximately 2,600 km (1,600 mile) natural gas pipeline system, including the main natural gas transportation network in the south of Brazil. GASBOL is capable of transporting up to 30 million cubic meters per day (1.1 billion cubic feet per day) of natural gas from Bolivia and Brazil’s offshore pre-salt fields to key markets in Brazil. The sale is expected to close in approximately two months following satisfaction of certain conditions precedent. EIG and Fluxys will also explore further strategic cooperation in Brazil’s gas infrastructure market.
EIG has invested in the Brazilian energy market for more than two decades, with EIG-managed funds committing over $2 billion to energy-related infrastructure projects in Brazil in the last ten years alone. With a focus on long-term fundamentals, EIG has taken strategic positions in key Brazilian energy and infrastructure assets. In addition to GASBOL, EIG has invested in Gas Natural Açu (“GNA”), an operational LNG terminal, natural gas and power hub with 6.4GW of gas-fired power under development at the Port of Açu. GNA is a partnership with BP and Siemens and has entered into binding agreements with State Power Investment Corporation of China to join as an additional partner subject to satisfaction of certain conditions precedent. Through GNA, EIG is investing in GASINF, GASOG and GASOFF, three natural gas pipelines capable of connecting offshore pre-salt gas and LNG to Brazil’s gas transportation network, ultimately including GASBOL, through a connection with NTS. EIG also owns a controlling interest in the Port of Açu through its investment in Prumo, which controls Brazil’s only privately held deep-water port capable of handling the largest oil tankers, known as VLCCs. Açu Petroleo has exported over 200 million barrels of pre-salt crude oil, has a maximum capacity of 2.1 million barrels per day and is developing a crude oil storage tank farm and two additional pipelines connecting the terminal to the crude oil transportation network in Rio de Janeiro state. In addition to oil, gas and power, EIG’s comprehensive strategy in Brazil includes renewables and low carbon investments through a “Green Hub” under development at the Port of Açu.
R. Blair Thomas, EIG’s Chief Executive Officer, said, “We are thrilled to have reached agreement with Fluxys for the sale of our interest in TBG. It has been a privilege to support the growth and development of GASBOL, critical infrastructure that delivers natural gas to key markets in Brazil, including Sao Paulo and the industrial regions in the southeastern part of the country. This investment underscores our dual commitment to supporting growth and development in this important region of the world while creating value for our investors. Today’s sale positions the EIG portfolio for additional opportunities in Brazil, and we look forward to partnering with Fluxys where possible.”
Pascal De Buck, Chief Executive Officer of Fluxys, said, “We look forward to joining the existing shareholders of TBG and developing our cooperation with EIG in Brazil’s gas infrastructure market. It is important to continue the development of TBG’s key infrastructure, which is capable of providing Brazil with roughly one-third of its daily natural gas supply. Our aim is to bring to TBG’s Board our industrial experience with gas infrastructure in regulated environments and support the progress of the company through this knowledge sharing.”
Mr. Thomas continued, “Looking ahead, we believe that the market dynamics for natural gas infrastructure in Brazil are very favorable, positioning the sector for extraordinary growth. We remain committed to the ongoing strategic relationships we have established with Fluxys and our partners in Brazil.”
Santander acted as financial advisor to EIG in connection with the transaction, and Paul Hastings and Stocche Forbes served as EIG’s legal advisors. Citi acted as financial advisor for Fluxys, and Linklaters and Mattos Filho served as Fluxys’ legal advisors.
About Transportadora Gasoduto Bolívia-Brasil
Transportadora Gasoduto Bolívia-Brasil (“TBG”) owns and operates a 2,593 km pipeline system, responsible for providing the uninterrupted flow of up to 30 million cubic meters per day of Brazilian and Bolivian natural gas, spanning the states of Mato Grosso do Sul, São Paulo, Paraná, Santa Catarina, and Rio Grande do Sul in Brazil. TBG is one of Brazil’s three major gas pipeline operators, along with TAG and NTS, supplying regions that account for more than 50% of the country’s GDP. TBG is physically connected to seven distributors and thousands of end consumers in those regions, thereby integrating a very large market. With its own specialized technical staff, TBG is the only carrier in the country that manages its own operations and maintenance and is the pioneer of the “entry and exit” model in the Brazilian grid system.
About EIG Global Energy Partners
EIG Global Energy Partners (“EIG”) is a leading institutional investor to the global energy sector with $21.9 billion under management as of September 30, 2020. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 39-year history, EIG has committed over $34.4 billion to the energy sector through more than 360 projects or companies in 36 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com.
Headquartered in Belgium, Fluxys is a fully independent gas infrastructure group with 1,200 employees active in gas transmission & storage and liquefied natural gas terminalling. Through its associated companies across Europe, Fluxys operates 9,000 kilometers of pipeline and liquefied natural gas terminals totaling a yearly regasification capacity of 29 billion cubic meters. Among Fluxys’ subsidiaries is Euronext-listed Fluxys Belgium, owner and operator of the infrastructure for gas transmission & storage and liquefied natural gas terminalling in Belgium. For additional information, please visit Fluxys’ website at fluxys.com.
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Kelly Kimberly / Brandon Messina