Tag Archives: Oil & Gas Exploration and Production (TRBC level 4)

New Fortress Energy is betting on Brazilian LNG growth with the acquisition of Hygo | Instant News


RIO DE JANEIRO (Reuters) – US-based New Fortress Energy Inc said on Wednesday it would buy natural gas company Hygo Energy Transition Ltd for $ 2.18 billion to expand its presence in Brazil, the frontier for growth in the burgeoning liquefied natural gas market. developing.

New Fortress, an energy infrastructure company, is among the private sector players turning their sights to Brazil, where demand for super-cooled LNG is increasing, although the market is smaller than in India and China, where power generation is shifting away from more coal. dirty to natural gas.

With Brazil opening up its natural gas industry to private investors, other companies including oil major BP PLC and US-based EIG Global Partners are also planning multibillion-dollar investments in the country.

New Fortress, a growing competitor in the LNG industry, has a small liquefaction plant in Florida and ships LNG throughout the Caribbean. In the past year, its market value has jumped 286% to $ 10 billion, according to Refinitiv Eikon data. The company is building a larger LNG import terminal in Mexico.

The company will acquire all of Hygo’s outstanding shares for 31.4 million shares of NFE Class A common stock and $ 580 million in cash.

Brazil’s annual demand for LNG is expected to grow by more than 80% by 2021, the fastest rate in the world, although its starting point is relatively low compared to large Asian consumers, said Kristen Holmquist, forecasting specialist at Poten & Partners.

Unlike these countries, most of Brazil’s electricity comes from hydropower. This LNG supply is partly intended to replace the supply of natural gas from pipelines originating from Bolivia.

Hygo transports supercooled fuel and has become a key player in Brazil’s natural gas industry as state-controlled Petrobras sells assets, canceling what was almost a monopoly on the market.

Hygo – a 50-50% joint venture between US private equity firm Stonepeak Infrastructure Partners and Golar LNG – has recently invested in a number of LNG projects in Brazil for power generation. The company is also competing to operate a highly desirable LNG import terminal which is leased by Petrobras.

“There is strong growth in Brazil for electricity-powered projects,” Holmquist said in a webinar on Wednesday.

Hygo has told Reuters in 2020 that it plans to use LNG instead of diesel in trucks.

The transaction has a corporate value of $ 3.1 billion and an equity value of $ 2.18 billion, according to the statement.

The Hygo acquisition comes four months after the company’s trading debut in New York was suspended at the last minute after Brazilian federal prosecutors said the then company’s chief executive was appointed in the early stages of a corruption investigation, to activity at the company previously.

The CEO at the time, Eduardo Antonello, had left the company. He hasn’t been charged.

New Fortress also agreed to buy Hygo’s controlling company, Golar LNG Partners LP for about $ 251 million in general equity value and a company value of $ 1.9 billion.

Golar LNG Ltd was up 15% in US trading, while New Fortress Energy was up 10%.

Reporting by Sabrina Valle and Rithika Krishna; Edited by Maju Samuel, Krishna Chandra Eluri, Steve Orlofsky and David Gegoryo

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EIG sells shares of the Brazil-Bolivia pipeline, eyeing Petrobras assets | Instant News


RIO DE JANEIRO (Reuters) -EIG Global Energy Partners have sold Belgian Fluxys some of South America’s largest natural gas pipeline, removing regulatory barriers to buying a larger share of the Brazil-Bolivia pipeline, the EIG CEO said on Tuesday.

Blair Thomas, CEO of EIG, poses in this undated leaflet photo obtained January 5, 2021. Danthi Comunicacoes / via REUTERS THIS IMAGE HAS BEEN PROVIDED BY THIRD PARTIES.

US-based EIG wants to bid on a 51% stake in the pipeline owned by Brazilian state-owned oil company Petrobras, Chief Executive Blair Thomas told Reuters, as part of a broader move to enter the country’s burgeoning natural gas industry.

He said the antitrust issue blocking EIG’s bid for a stake in Petrobras was resolved by the sale of an undisclosed 27.5% stake in EIG in the Brazilian part of the pipeline known as Gasbol, linking Bolivia’s reserves to Brazil.

“It’s about freeing us up for a broader strategy,” Thomas said in a videoconference interview.

He said EIG, which manages a fund focused on energy assets, aims to create private sector alternatives to processing and transporting gas from major oil companies as the country develops the biggest offshore discovery of the century, known as pre-salt.

EIG is poised to spend billions to join partners in acquiring pipelines, processing plants and ultimately natural gas production in Brazil, said Thomas, as supply and demand for fuel grows in Latin America’s largest economy.

“We believe the energy transition and natural gas have a key role in that,” said Thomas.

The EIG stakes in Brazil come as Petroleo Brasileiro SA, as the state company is called, accelerates asset sales, ending what was almost a state-owned monopoly on natural gas five years ago.

He said EIG was also looking at the middle-aged offshore fields of Petrobras producing 150,000-200,000 barrels per day, including the legacy fields of Albacora and Marlim.

SHIFT AWAY FROM BOLIVIA

Gasbol links natural gas reserves in the Andean country to Brazil through two separate entities: Gas TransBoliviano SA (GTB) which owns and operates the Bolivian section and Transportadora Brasileira Gasoduto Bolívia-Brasil SA (TBG), its Brazilian partner.

The EIG fund holding the Brazil-Bolivia pipeline investment will be closed, Thomas said. The Bolivian side of the 2,600-kilometer (1,600-mile) pipeline, in which EIG owns a 38% stake, will eventually be sold as well, he said, without providing details.

Brazil has imported most of its natural gas from Bolivia in recent decades. But new oil and gas discoveries are slowly reducing this dependence and could turn Brazil into a gas exporter one day, Thomas said.

Together with cheap liquefied natural gas (LNG) imported by ships, Thomas said, offshore discoveries are likely to feed a growing consumer market driven by industrial use.

On Monday, EIG-backed natural gas company GNA received its first imported LNG cargo in Brazil. The supercooled fuel will be used in power plants which are expected to start commercial operations in the first half of 2021.

Brazil will now be a regular importer of LNG, Thomas said, and in 10-15 years the country may be ready for its first export plant, another EIG investment target.

“We really want to be first in that,” he said.

Reporting by Sabrina Valle and Gram Slattery Editing by Brad Haynes, Paul Simao, Grant McCool and David Gregorio

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EIG is selling shares in the Gasbol pipeline, eyeing more Brazilian investment | Instant News


RIO DE JANEIRO (Reuters) – EIG Global Energy Partners has sold its stake in the Brazilian portion of the Bolivia-Brazil natural gas pipeline, known as Gasbol, to Fluxys Belgium NV, the US-based company’s chief executive said. Tuesday.

Blair Thomas, CEO of EIG, poses in this undated leaflet photo obtained January 5, 2021. Danthi Comunicacoes / via REUTERS THIS IMAGE HAS BEEN PROVIDED BY THIRD PARTIES.

The sale of EIG’s 27.5% stake in Brazil’s pipeline for an undisclosed amount ends a regulatory conflict that could prevent it from bidding on a 51% stake in the same asset that Brazilian state-owned oil company Petrobras is planning to sell. a competitive bid, he said.

EIG intends to purchase a larger share of this pipeline, as well as additional assets, and invest in Brazil’s natural gas industry, CEO Blair Thomas told Reuters in a video interview.

EIG, which manages a fund focused on energy assets, has a multi-billion dollar firepower to acquire assets in transportation, processing and ultimately natural gas production in Brazil, Latin America’s largest economy.

“It’s about freeing us up for a broader strategy,” said Thomas.

The special fund is where the pipeline investment will be closed, said Thomas. The Bolivian side pipeline, in which EIG has a 38% stake, will eventually be sold as well, he said, without disclosing further details.

The Bolivia-Brazil natural gas pipeline connects natural gas reserves in the Andean nation to Brazil’s main economic and industrial hub, according to the EIG website.

The pipeline consists of two separate entities: Gas TransBoliviano SA (GTB) and Transportadora Brasileira Gasoduto Bolívia-Brasil SA (TBG), which own and operate the Bolivia and Brazil sections respectively.

Selling prices remain at the lower end of what EIG thinks is fair for the Brazilian pipeline section, Thomas said.

Future acquisitions in Brazil could be similar in size to the $ 8.7 billion gas pipeline that Petrobras sold to France’s Engie SA and Canada’s Caisse De Depot Et Placement Du Quebec (CDPQ) in 2019. EIG is second in the closed bid competition. , he said.

Reporting by Sabrina Valle and Gram Slattery; Edited by Paul Simao and Grant McCool

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US-based EIG is selling a stake in the Gasbol pipeline, eyeing more Brazilian investment | Instant News


RIO DE JANEIRO (Reuters) – Washington-based EIG Global Energy Partners has sold its stake in the Brazilian portion of the Bolivia-Brazil natural gas pipeline, known as Gasbol, to Fluxys Belgium NV, Chief Executive Blair Thomas said in an interview on Tuesday. .

The deal, whose value was not disclosed, comes as EIG moves to buy a larger share of the same pipeline as well as additional assets and invest in Brazil’s natural gas industry, Thomas said. EIG has a multi-billion dollar firepower to acquire assets in transportation, processing, and ultimately natural gas production in the South American country.

(This story corrects the spelling of the CEO’s name in paragraphs 1 and 2.)

Reporting by Sabrina Valle and Gram Slattery

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Edison from Italy sold off Norway’s upstream assets to focus on the energy transition | Instant News


MILAN, December 30 (Reuters) – Edison of Italy said on Wednesday that it had sold its exploration and production assets in Norway to Norwegian oil and gas group Sval Energi as part of its strategy to focus on clean energy.

Edison, which is owned by EDF France, said the deal valued Edison Norge at US $ 300 million, including debt. It said the impact on his net financial position “is expected to be much higher than that amount.”

The deal, which includes a portfolio of five exploration permits and reserves of 25.9 million barrels of oil equivalent, is expected to close before the end of June.

Edison, who recently sold his upstream oil and gas assets in Italy, Egypt, Greece, Britain, and Croatia to Energean, has quit the exploration and production business and now wants to sell some of his non-operating shares in his upstream Algerian activities.

He said that his party would invest the proceeds from sales in energy transition businesses such as renewable energy and energy efficiency. (Reporting by Stephen Jewkes; Editing by Leslie Adler)

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