The Caisse de dépôt et placement du Québec (CDPQ) announced Thursday that it has invested 3.1 billion Brazilian reals (about 848 million Canadian dollars) in natural gas transportation infrastructure in Brazil.
The Quebecer's nest egg explained that it has reached an agreement with its partner ENGIE Brasil Energia, a subsidiary of the French renewable energy giant ENGIE, to acquire 15% of its subsidiary Transpotadora Associada de Gás (TAG).
TAG was formerly owned by the Brazilian state-owned company Petrobras and was acquired 90% by ENGIE and CDPQ in 2019, then 100% in 2020.
With Thursday's announcement, the Caisse will own 50% of TAG, while ENGIE Brasil Energia will hold 17.5%. The remaining 32.5% of the shares remain the property of ENGIE, the company's French parent company.
“TAG has demonstrated solid performance since our initial investment approximately five years ago,” said Emmanuel Jaclot, Senior Vice-President and Head of Infrastructure at CDPQ.
The latter added that the fund intends to further expand its portfolio in Brazil in the coming years.
In the case of ENGIE Brasil Energia, the capital provided by the fund will allow the implementation of new projects.
“The partial sale of ENGIE Brasil Energia's stake in TAG is part of our plan to invest in new renewable energy power plants and power transmission lines,” explained Eduardo Sattamini, Chief Executive Officer of ENGIE Brasil Energia.