Blog

Producción y mercados energéticos 09/04/19

Latest Energy News

09 April 2019

TOP STORY: Engie-led consortium wins 90% stake in Petrobras’ TAG gas pipeline (Brazil) Brazilian state-held oil and gas company Petrobras has agreed to sell a 90% stake in its wholly-owned gas pipeline unit TAG (Transportadora Associada de Gás) to a consortium of the French energy group Engie and the Canadian pension fund Caisse de Depot et Placement du Quebec for a total consideration of US$8.6bn. The transaction price includes US$800m to pay TAG’s debt to Brazil National Development Bank (BNDES). Engie’s net total ownership of TAG (directly and indirectly through Engie Brasil Energia) will stand at 49.3%, while Petrobras will retain a 10% interest. TAG operates and manages a 4,500-km long pipeline network, located mostly in the North and Northeastern parts of Brazil. The company’s transport capacity is 74.7 mcm/d. It represents around 47% of the pipeline extension in Brazil and 26% of the total domestic gas transportation capacity. The assets are regulated by the Brazilian oil and gas regulatory agency, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP). The sale of TAG was announced in September 2017 and the non-binding phase started in October 2017. However, it was suspended by the 5th Federal Regional Court of Brazil in June 2018. Petrobras needs to sell non-core assets in order to reduce its massive net debt of US$73bn (as of January 2019). Over the 2016-2018 period, Petrobras divested assets worth US$20bn and could sell another US$20bn worth of assets through 2019. However, the entire privatisation of the company has been ruled out by the government so far.

Companies Shell will invest up to US$15bn in Nigeria’s oil and gas sector Global oil and gas company Shell has outlined plans to invest up to US$15bn in the Nigerian oil and gas sector over the next five years. The funds will be allocated across more than 20 different sizeable onshore, shallow and deep offshore projects. Read more Carlyle will buy 30%-40% of Spanish energy company Cepsa Abu Dhabi-based strategic investment company Mubadala Investment Company has reached an agreement with the Carlyle Group, under the terms of which funds affiliated with Carlyle will acquire a minority interest – between 30% and 40% – in the Spanish energy company Cepsa from Mubadala. The transaction, estimated at US$3.6bn (€3.2bn), would value Cepsa at around US$12bn (€10.6bn). Read more Policy & Regulatory Egyptian government will end fuel subsidies by June 2019 As part of a reform programme led by the International Monetary Fund (IMF), the Egyptian government has decided to end subsidies on most fuels by mid-June 2019 . Read more Results of Dunkirk offshore wind tender (France) are expected in May 2019 The French energy regulator CRE (<i>Commission de Régulation de l’Energie</i>) expects to publish its recommendations for an offshore wind project off Dunkerque (northern France), which will then be followed by the government’s final decision based on the CRE’s advices. The Dunkerque offshore wind project will have a total installed capacity ranging between 250 MW and 700 MW. Read more Infrastructure & Investments Engie and Tokyo Gas will develop 899 MW of solar and wind capacity in Mexico Tokyo Gas, through its subsidiary Tokyo Gas Renewable, has announced that it will establish a 50-50 joint venture (JV), Heolios EnTG, with French energy group Engie to develop and operate six renewable energy projects totalling 899 MW in Mexico. Read more UK government approves 1.7 GW Teesside CCGT project development The British Secretary of State for Business, Energy and Industrial Strategy has given development consent to the 1,700 MW CCGT power project that will be built on the site of the former Teesside coal-fired power plant in northeast England (United Kingdom) by Sembcorp Utilities, an affiliate of the Singapore-based company Sembcorp Industries.  … Read more Financing secured for expansion of Patratu coal-fired power plant (India) Indian state-run power company NTPC (National Thermal Power Corporation) has secured a US$1.5bn loan from Power Finance Corporation, a state-run lender in India, and its subsidiary REC, for the completion of the second phase of the Patratu expansion project (2x800MW) in the Ramgarh district of Jharkhand (India). … Read more