Mitsui will acquire 49% of Gaspetro sharesStaff writer ▼ | October 27, 2015
Mitsui & Co. entered into an agreement with Petrobras concerning partial acquisition of shares in Petrobras Gás S.A (Gaspetro), which has equity stakes in local gas distribution companies (LDCs) in 19 Brazilian states.
Acquisition Gaspetro has stakes in 19 Brazilian states
In 2006, Mitsui acquired Mitsui Gas, which has equity interests in LDCs in seven states. In the nine years since then, Mitsui and Mitsui Gas have worked to improve the gas distribution infrastructure in Brazil and ensure stable supplies of gas through LDCs' business.
In December 2014, Mitsui acquired an equity interest in Companhia de Gas do Ceara S.A., an LCD based in the State of Ceará in northern Brazil thorough Mitsui Gas.
Mitsui is currently engaged in gas distribution operations in eight Brazilian states. The acquisition of shares in Gaspetro will increase the number of states served by gas companies in which Mitsui Gas has an equity interest to 19 (*2), and the amount of gas supplied by those companies to 30 million cubic meters per day within Brazil.
The gas distribution business in Brazil consists of regional monopolies based on the concessions granted by state governments.
Under concession agreements signed with state governments, distribution companies develop the gas distribution infrastructure in their service areas in each state, including gas pipeline networks, while distributing gas purchased from Petrobras to power stations and general industrial and commercial users, as well as residential consumers.
They also distribute gas for use as fuel for natural gas vehicles. Gaspetro, in which Mitsui through Mitsui Gas will hold a stake, has built a well-balanced portfolio spanning several regions, including central, northeastern, and southern Brazil. Gas demand is expected to grow in step with economic development in all of these regions. ■