EIG Buys 50% Stake in Peru’s Largest Gas Pipeline from CPP Investments

CPP Investments will sell its 49.87% stake in Peru’s main natural gas pipeline operator, TgP, to EIG. The deal, subject to approvals, marks the end of a decade-long investment in a key supplier for 40% of Peru’s power generation.

(P&GJ) — Canada Pension Plan Investment Board (CPP Investments) has agreed to sell its 49.87% stake in Transportadora de Gas del Peru S.A. (TgP) to investment vehicles managed by EIG, the companies announced on Aug. 11.

TgP operates Peru’s primary natural gas and natural gas liquids pipelines under a long-term concession, supplying about 40% of the country’s power generation. CPP Investments first acquired a position in 2013 and later increased its stake through follow-on transactions from 2014 to 2017, investing a total of $1.4 billion.

“TgP has been a successful investment for CPP Investments over the past decade, delivering strong returns for CPP contributors and beneficiaries,” said James Bryce, head of infrastructure for CPP Investments. “We look forward to seeing TgP’s continued success under EIG.”

EIG, a global energy and infrastructure investor, said it plans to maintain TgP’s operational reliability and role in Peru’s energy network. “Our focus will be on supporting TgP’s continued operational excellence and reliability,” said Matt Hartman, EIG’s global head of infrastructure.

The deal is subject to customary closing conditions and regulatory approvals. Financial terms will be disclosed once the transaction is completed.