ENGIE to invest $830 M in Brazil transmission project

ENGIE announced that it has won a competitive tender launched by Sterlite for the acquisition of a 30-year greenfield concession project. The project comprises the construction, operation and maintenance of a 1,800 km electric power transmission line, a new substation and the expansion of 3 additional substations in northern Brazil.

All necessary installation licenses have been secured to start construction in 2020. The total investment cost of the project is expected to be EUR 750 million (~ $830 M).

The 30-year concession will be ENGIE’s second transmission project in Brazil. In December 2017 the Group won ANEEL ‘s transmission auction for the Gralha Azul project, which includes construction of 1,000 km of transmission lines, 5 new substations and the expansion of an additional 5 substations in the state of Paraná. With EUR 440 million of investments, the construction of Gralha Azul is already underway.

ENGIE thus confirms its position as a major player in the electrical infrastructure sector in Latin America, with nearly 3,000 km of lines deployed by 2022 in Brazil and 2,200 km already deployed in Chile.

Isabelle Kocher, ENGIE CEO said:

“This transaction follows the acquisition in Brazil of the TAG gas transmission network, which represents 4,500 km of gas pipelines, or 47% of the country’s total gas infrastructure. We are accelerating the delivery of our strategy in Latin America where there is a strong need for new infrastructure to meet increasing energy demand”

Source: ENGIE