Petrobras is about to sell control of the gas pipeline between Bolivia and Brazil to the US EIG

By Walter Vasquez

​The Brazilian state Petrobras “is close to reaching an agreement to sell to the US private equity firm EIG Energy Partners the control of the gas pipeline that connects Bolivia with the south of Brazil”.

According to information extracted from the Bolivian portal Radar Energético, which takes international agencies as its source, it is expected that the neighboring country’s oil company will receive more than $500 million for its 51% stake in TBG, operator of the gas pipeline on the side Brazilian.

“The offer could reach up to $1 billion, depending on the details of the talks.”, indicate the sources who know the negotiation.

TBG owns a 2,593 km pipeline in Brazilian territory that crosses 136 municipalities, from the border with Bolivia, in Mutún, to the southern state of Río Grande do Sul, crossing five other states, including São Paulo. Its pipeline transport capacity is 30 million cubic meters per day (MMm3/d) and it has 15 compression stations and 50 access points in its Brazilian extension.

Comparing operations and prices, “if this American company pays approximately $500 million for 51% of the shares (of TBG), that means that YPFB has made a very good purchase of 7.88% of the share package”, he asserted the former Minister of Hydrocarbons and energy analyst Álvaro Ríos, who also considered that EIG “sees very good expectations for the gas pipeline.”

In June of last year, YPFB Transporte, through its subsidiary YPFB Transporte do Brasil, increased by 7.88% its share package in the company Transportadora Brasileira Gasoducto Bolivia-Brasil SA (TBG) from 12 to 19.88% with an investment of US$37, 28 million.

“This is important, because From now on, the decisions of the majority shareholders must take into account the position of YPFB”, highlighted the then president of the state oil company Wilson Zelaya.

Ríos lamented that Bolivia cannot participate more in the opening of the Brazilian market, which, with the sale of control of TBG, takes another step in its privatization process. “Our gas is declining and we will not be able to participate actively in the opening of this market“, Held.

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By Walter Vasquez

​The Brazilian state Petrobras “is close to reaching an agreement to sell to the US private equity firm EIG Energy Partners the control of the gas pipeline that connects Bolivia with the south of Brazil”.

According to information extracted from the Bolivian portal Radar Energético, which takes international agencies as its source, it is expected that the neighboring country’s oil company will receive more than $500 million for its 51% stake in TBG, operator of the gas pipeline on the side Brazilian.

“The offer could reach up to $1 billion, depending on the details of the talks.”, indicate the sources who know the negotiation.

TBG owns a 2,593 km pipeline in Brazilian territory that crosses 136 municipalities, from the border with Bolivia, in Mutún, to the southern state of Río Grande do Sul, crossing five other states, including São Paulo. Its pipeline transport capacity is 30 million cubic meters per day (MMm3/d) and it has 15 compression stations and 50 access points in its Brazilian extension.

Comparing operations and prices, “if this American company pays approximately $500 million for 51% of the shares (of TBG), that means that YPFB has made a very good purchase of 7.88% of the share package”, he asserted the former Minister of Hydrocarbons and energy analyst Álvaro Ríos, who also considered that EIG “sees very good expectations for the gas pipeline.”

In June of last year, YPFB Transporte, through its subsidiary YPFB Transporte do Brasil, increased by 7.88% its share package in the company Transportadora Brasileira Gasoducto Bolivia-Brasil SA (TBG) from 12 to 19.88% with an investment of US$37, 28 million.

“This is important, because From now on, the decisions of the majority shareholders must take into account the position of YPFB”, highlighted the then president of the state oil company Wilson Zelaya.

Ríos lamented that Bolivia cannot participate more in the opening of the Brazilian market, which, with the sale of control of TBG, takes another step in its privatization process. “Our gas is declining and we will not be able to participate actively in the opening of this market“, Held.

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