Belgian company Fluxys, whose assets include the Zeebrugge LNG import terminal and a stake in Dunkirk LNG in France as well as the Trans-Adriatic Pipeline, has agreed to buy a minority stake from the equity fund, EIG Global Energy Partners (EIG), in a gas system operator in Brazil.
The deal is for part of the Brazilian utility, Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), which is the owner and operator of a 2,600-kilometres pipeline system in the southern part of the South American country.
Fluxys said the completion of the equity transfer was expected to take another two months.
Both companies said they would also explore further strategic cooperation in Brazil’s gas infrastructure market.
“Fluxys is looking forward to become an industrial partner in TBG as it is a key energy infrastructure for Brazil and the company’s management and workforce are highly experienced,” stated Fluxys.
The Fluxys infrastructure group employs 1,200 people in Europe in its growing gas transmission and storage and LNG terminal businesses.
Its associated companies across Europe operate 9,000km of pipeline and its assets import 29 billion cubic metres of regasified LNG.
It is also a shareholder in the Trans-Adriatic Pipeline, an 878-kilometres transportation system bringing Caspian natural gas from Azerbaijan to Greece, Albania, via the Adriatic Sea and Italy.
“TBG is an excellent fit for Fluxys in its strategy to complement its development in Europe with industrial partnerships in gas infrastructure outside Europe in stable markets with growth opportunities,” said Fluxys.
“Brazil in this respect has high energy demand growth prospects and natural gas allows it to meet this need jointly with renewable energy sources,” the company added.
The Belgian grid operator said the partnership with TBG was an important step in the roll-out of Fluxys’ growth strategy outside Europe.
“Fluxys will open a branch in Brazil shortly for managing its Brazilian interests as well as its further business development in the country and the wider Latin America region,” Fluxys stated.