ENGIE and CDPQ acquire remaining 10% of TAG in Brazil

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.