Cemig acquires Petrobras natural gas arm

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Wednesday, October 15, 2014

Brazilian firm Cemig completed the purchase of an additional 40% stake in Gasmig, a gas distribution arm of state-run energy giant Petrobras.

In a regulatory filing, Cemig said it paid 571mn reais (US$235mn) to assume 100% of Gasmig's capital stock.

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Petrobras mooted the sale in July as part of its plan to divest up to US$11bn in assets by 2018.

Cemig signaled a desire for natural gas expansion by announcing a joint venture with Spain's Gas Natural Fenosa in June.

Gasmig holds exclusive distribution rights for piped natural gas in Brazil's Minas Gerais state.

According to Petrobras, the distributor transports 4.1Mm3/d of gas via an 850km pipeline network.

The deal is Petrobras' second major sale to Cemig in the past year.

Last October, a consortium comprising Cemig and Renova acquired Petrobras' 51% stake in hydroelectric generator Brasil PCH for US$310mn.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.