Petrobras sells stake in piped natural gas distributor Gasmig
RIO DE JANEIRO -- Petrobras’ Board of Directors has approved the sale of its 40% interest in Gasmig to Cemig - Companhia Energética de Minas Gerais - for $270 million (R$600 million).
Gasmig is the sole distributor of piped natural gas in the state of Minas Gerais and is responsible for the distribution of 4.1 million m³/day of natural gas through a network of gas pipelines that stretches for more than 850 km.
Besides the natural expansion of the existing distribution network emphasizing residential and commercial consumers, the Gasmig Business Plan provides for the construction of a distribution gas pipeline of approximately 500 km to Uberaba. This pipeline is designed to supply western and mid-western Minas Gerais and deliver 1.25 million m³/day for the future Petrobras fertilizer plant to be located in that municipality, as stablished in the agreement signed between Petrobras, Cemig and Gasmig on May 3, 2014, and in the contract for natural gas distribution service.
Petrobras is the supplier of the natural gas sold by Gasmig through long-term contracts. This transaction will not affect such contracts.
Cemig, current controller of Gasmig with 59.6% of the shares, is an integrated company that provides electricity generation, transmission, distribution and sale, besides other activities such as natural gas distribution and telecommunication services.
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