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Brazil TAG sale bodes well but more is needed

Engie’s purchase of the pipeline network does not necessarily mean that it will be open to producers other than state-run Petrobras Engie’s purchase of the pipeline network does not necessarily mean that it will be open to producers other than state-run Petrobras.
By Elena Mataro 1 May 2019 Americas / Companies & Finance 0 34180
Petrobras's Cacimbas-Catu gas pipeline in Brazil. (Petrobras)

Engie’s entry into the Brazilian gas transport sector via its purchase of Transportadora Associada de Gas (TAG) does not mean the pipeline network will be immediately opened up to use by other shippers as the sale does not affect the contracts Petrobras has for almost all of the system's capacity.

Petrobras has contracts to transport 75.8 million cubic metres per day (MMcm/d) via TAG. Most of this is sold under four 12-year ‘ship-or-pay’ gas transport agreements (GTAs) for fixed volumes and with inflation-adjusted...