Brazilian engineering company Odebrecht has reached an agreement with Sempra Energy on the sale of its 55% stake in the US$5bn Gasoducto Sur Peruano (GSP) gas pipeline project in southern Peru. The group had announced the divestment in April 2016. The transaction is now expected to unlock the construction of the gas pipeline project.
A consortium of Odebrecht (75%) and Spanish gas transmission system operator Enagas (25%) won a 34-year concession for the project in mid-2014, through an international tender organised by the State agency Proinversion, which had disqualified the other competing consortium of Engie and Sempra. Odebrecht, which is at the center of a massive graft probe in Brazil, has already transferred a 20% stake to Grana y Montero, which took over project management in March 2016.
The Gasoducto Sur Peruano gas pipeline will stretch over 1,080 km from Camisea (Cusco) to a new petrochemical complex to be built in Ilo (Moquegua), near the Chilean border. The consortium planned to invest between US$3.6bn and US$4bn in the construction and will charge US$7.3bn for services offered during the 34-year concession.