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Engie, Caisse Plan to Bid $9 Billion For Petrobras Pipeline

  • Proposal would exceed value of bid Engie made back in April
  • Pipeline network covers 2,800 miles across 10 Brazilian states
A man fishes in Guanabara Bay while an oil drilling platform floats in the background near Niteroi, Brazil.
A man fishes in Guanabara Bay while an oil drilling platform floats in the background near Niteroi, Brazil.Photographer: Dado Galdieri/Hilaea Media
Updated on

French utility Engie SA and a Canadian pension fund plan to offer as much as $9 billion (34 billion reals) for Petrobras’s natural gas pipeline network, potentially a $1 billion boost from their initial bid, according to people with knowledge of the matter.

Petroleo Brasileiro SA is now finalizing terms with Engie and the Canadian fund, Caisse de Depot et Placement du Quebec, the people said, asking not to be named because the talks are private. Petrobras then plans to touch base with other groups for a second round of bids that must meet the terms agreed to with Engie. In April, Mubadala Development, in a consortium with EIG Global Energy Partners, and Macquarie Group Ltd. presented two separate bids, people said at the time.