Petrobras, EIG Global Energy near deal for Bolivia-Brazil gas pipeline

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Petrobras (NYSE:PBR) is nearing a deal to sell control of a natural gas pipeline that connects southern Brazil and Bolivia to EIG Global Energy Partners, Reuters reports.

The Brazilian company is expected to receive more than $500M for the 51% stake in TBG, or Transportadora Brasileira Gasoduto Bolivia-Brasil, and the bid could reach as high as $1B, according to the report.

The 1,600-mile pipeline system is the main transportation network for natural gas in the south of Brazil, generating more than 900M reais ($180M) of operating profit for its owners in the first nine months of 2021.

Separately, Petrobras CEO Joaquim Silva e Luna says he will not leave the company despite facing criticism from Brazil President Jair Bolsonaro and others over a fuel price hike announced last week.