CPP Investments to sell 49.87% TgP stake to EIG, marking decade-long successful exit from key Peruvian energy infrastructure asset.
The Canada Pension Plan Investment Board (CPP Investments) has officially announced that it has entered into a definitive agreement to divest its 49.87% equity stake in Transportadora de Gas del Perú S.A. (TgP) to entities managed by EIG, a global institutional investor with extensive experience in the energy and infrastructure sectors.
TgP is the operator of Peru’s primary natural gas and natural gas liquids (NGL) pipeline systems, functioning under a long-term concession framework. These pipelines play a crucial role in the country’s energy supply, delivering around 40% of the natural gas used for national power generation. This strategic infrastructure is considered a backbone of Peru’s energy sector, supporting both industrial operations and electricity production.
James Bryce, Head of Infrastructure at CPP Investments, highlighted the strong performance of the asset during CPP’s ownership. “TgP has been a successful investment for CPP Investments over the past decade, generating robust returns for the contributors and beneficiaries of the Canada Pension Plan. We are proud of the role we have played in supporting its operations and look forward to watching TgP’s continued growth under EIG’s stewardship. Latin America remains an important focus for us, and we will continue to explore and assess opportunities in the region, given its compelling economic and infrastructure development prospects,” Bryce said.
CPP Investments initially acquired a stake in TgP in 2013 and later expanded its ownership through additional transactions between 2014 and 2017. Over this period, the organization invested a total of approximately US$1.4 billion, reflecting its long-term commitment to the asset and the sector.
Representing EIG, Matt Hartman, the firm’s Global Head of Infrastructure, emphasized their enthusiasm for the acquisition. “We are excited to apply our deep infrastructure expertise and our history of investing in Latin America to further enhance TgP’s operations. Our goal is to support TgP in maintaining its exceptional standards of operational reliability and efficiency, ensuring that it continues to serve as a critical component of Peru’s energy infrastructure and a trusted partner to its customers,” Hartman stated.
The completion of the transaction is contingent upon customary closing conditions and the receipt of necessary regulatory approvals. Specific financial details of the sale will be made public once the deal has officially closed.
With this transaction, CPP Investments transitions out of an asset that has provided consistent returns, while EIG steps in to oversee a vital energy provider poised to play a continued role in Peru’s economic and industrial growth.
