US-based energy investor EIG has acquired a 49.87 percent equity stake in Transportadora de Gas del Peru from the Canada Pension Plan Investment Board.
EIG announced the completion of the stake purchase in a statement on Friday.
In August, CPP Investments reached a definitive deal to sell its 49.87 percent equity ownership stake in TgP to vehicles managed by EIG.
CPP Investments first invested in TgP in 2013 and subsequently increased its holding through follow-on transactions from 2014 to 2017, having deployed $1.4 billion in total.
TgP operates Peru’s principal natural gas and natural gas liquids pipelines under a long-term concession, supplying approximately 40 percent of the country’s power generation.
“We are delighted to complete this transaction and embark on the next chapter of our partnership with TgP,” said Matt Hartman, EIG’s global head of infrastructure.
“Our priority is to support TgP’s operational excellence and long-term stability, delivering value for customers and stakeholders throughout Peru,” Hartman said.
One of TgP’s customers is Peru LNG, the operator of the country’s only LNG export terminal at Pampa Melchorita in which EIG has a stake.
The Peru LNG pipeline’s approximate starting point is at kilometer 211 of the TgP pipeline, in the community of Chiquintirca, in the Ayacucho region, and its endpoint is the Peru LNG plant.
Last year, MidOcean Energy, the LNG unit of EIG, completed the purchase of an additional 15 percent interest in Peru LNG from Hunt Oil.
MidOcean’s interest in Peru LNG now stands at 35 percent.
