Repsol sells 10% stake in Peru pipeline to Enagás

Madrid-based energy company Repsol will sell its 10 percent stake in Transportadora de Gas del Perú (TgP) to Spain’s Enagás for $219 million, according to a statement.

The transaction, which is in line with Repsol’s previously announced 2012-2016 strategic plan to divest non-core assets of €4 billion to €4.5 billion, will generate estimated net capital gains of nearly $75 million, Repsol said.

TgP, Peru’s largest natural gas and natural gas liquids transporter, was Repsol’s latest divestment in the liquefied natural gas (LNG) sector.

In January, the Spanish company said it had completed the sale of its LNG assets, thus reducing its net debt by $3.3 billion.

Repsol shed its stake in the pipeline just as the Canadian Pension Plan Investment Board (CPPIB) made its first infrastructure investment in Peru, acquiring a 10.4 percent stake in the same pipeline from Graña y Montero, Peru’s largest engineering and construction company, for $200 million.

Enagás, also based in Madrid, is active in the transport and underground storage of natural gas, as well as in the regasification of natural gas to Spain’s National Pipeline Network. It has nearly 10,000 kilometres of pipelines throughout Spain; three underground storage facilities and four regasification plants. It also owns 40% of the Bilbao regasification plant.