Petrobras creates thermopower unit to draw investors

Brazil's state-run energy giant Petrobras will bundle its thermopower assets into one unit in a bid to attract new investors, according to the head of the company's natural gas division.

Petrobras is selling stakes in 20 thermoelectric power plants totaling 6.24GW of installed capacity as part of a US$15.1bn divestment plan.

"We are consolidating all of our (thermopower) assets into one to see if we can bring in partners," Petrobras natural gas and refinery chief Jorge Celestino was quoted as saying by the Folha de S.Paulo newspaper.

He added that Petrobras is seeking regulatory changes that allow thermoeletric plants to be a base load power source, guaranteeing their future profitability.

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Fossil fuel-fired thermal plants are currently used only as a backup for hydropower during times of low rainfall.

According to BTG Pactual, Petrobras' thermopower facilities are worth around US$4bn.

Petrobras has so far raised US$9.8bn from asset sales since the start of last year. Divestments have included the pre-salt Carcará field, the Nova Transportadora do Sudeste pipeline unit, and subsidiaries in Argentina and Chile.

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