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Project Insights

Beware the great Brazilian pipeline sell-off

A large majority of Brazil’s gas transport capacity will soon be controlled by private companies, but foreign investors remain cautious A large majority of Brazil’s gas transport capacity will soon be controlled by private companies, but foreign investors remain cautious.
By Chris Noon 24 May 2018 Americas / Pipelines, Storage & Power 0 31003
A worker on a Brazilian gas pipeline. (Petrobras)

The financial debacle at Brazil’s state-owned Petrobras has brought about the rapid privatisation of the country’s gas pipeline network, but potential buyers remain wary. 

The heavily indebted company was forced to sell most of its pipeline network as part of a $21 billion divestment programme. The sell-off – together with the auctioning of transport capacity – means around 85% of Brazil’s total gas transport capacity of 294.2 million cubic metres per day (MMcm/d) could be controlled by private companies by the end of...