ENGIE acquires transmission project in the North region of Brazil
On Monday, December 23, ENGIE Brasil Energia executed an agreement for the purchase of 100% of the stock of Sterlite Novo Estado Energia S.A., the holder of a concession for the construction, operation and maintenance of 1,800 kilometers of transmission lines in the states of Pará and Tocantins. The BRL 410 million deal also includes construction of a new substation and upgrades to three existing substations in the two states.
“The acquisition aligns with the company’s strategy of positioning itself as one of the main players in the Brazilian energy infrastructure sector,” said Chief Executive and Investor Relations Officer of ENGIE Brasil Energia, Eduardo Sattamini. “We see an opportunity to expand our Brazilian operations in the transmission segment, which, with reinforcements in the form of new transmission lines, improves the sector’s energy efficiency – one of ENGIE’s basic investing assumptions,” Sattamini explained. “We will keep the shareholders and the market at large abreast of developments on this front and any others that are relevant to the marketplace,” the executive added.
The operation has received the approval of ENGIE Brasil Energia’s Board of Directors. Completion is contingent on approval by the National Electric Energy Agency (Aneel). In December 2017, Sterlite Participações, Novo Estado’s controlling shareholder, placed a winning bid for Lot 3 in Aneel’s transmission auction, which concerned the project to be built in the North region of Brazil. All installation licenses have already been secured and construction works are set to begin in 2020.
This will be ENGIE’s second transmission project in Brazil. In December 2017, the Company won Lot 1 of the Auction mentioned earlier, for the construction of one thousand kilometers of transmission lines, five new substations and the expansion of another five in the state of Paraná. At over BRL 2 billion in investments, construction of the “Gralha Azul” project is already underway and is expected to generate up to 5 thousand direct jobs at peak employment.
The Novo Estado acquisition is yet another infrastructure deal for ENGIE in 2019, a year marked by the Company’s entry into the Brazilian natural gas segment with the acquisition of TAG.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).