Fluxys: agreement for partnership in Brazilian gas transmission system operator TBG

5 January 2021 – Gas infrastructure company Fluxys and institutional investor EIG Global Energy Partners (EIG) have entered into an agreement on the transfer of EIG’s minority stake in Brazilian gas transmission system operator TBG.

Completion of the transfer is expected to take approximately two months. Both companies will 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.

Key energy infrastructure

TBG (Transportadora Brasileira Gasoduto Bolívia-Brasil) owns and operates the 2,600 km pipeline system in Southern Brazil. The company is one of Brazil’s three major gas pipeline operators and its system covers more than a quarter of the country’s main pipeline network.

Strategic fit

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. Brazil in this respect has high energy demand growth prospects and natural gas allows to meet this need jointly with renewable energy sources.

The partnership in TBG is 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.

Industrial partnership

Fluxys’ aim is to bring to TBG’s Board its industrial experience and expertise in gas infrastructure and support the development of the company through this knowledge sharing. Besides its operations expertise Fluxys has two decades of experience with regulatory gas market reform such as Brazil is currently implementing. Additionally Fluxys is pioneering in Belgium to accommodate carbon neutral gases in its infrastructure, which creates valuable expertise for future energy transition developments in Brazil.