Natural gas group BG Group (LON:BG.) plans to sell its 60.1 per cent holding in Comgás, Brazil's largest gas distribution company, for approximately US$1.8 billion to Cosan SA Indústria e Comércio.
The partners have signed a memorandum of understanding to that effect, and the transaction is expected to complete by the end of this year.
Chief executive Sir Frank Chapman said: "This is another important step in our ongoing portfolio rationalisation and funding diversification programmes, underpinning delivery of the wealth of opportunities we have across our global portfolio.
“This deal is part of our plans to release some US$5 billion of capital in the next two years through strategic divestments."
Shareholders in Comgás are BG Group and Royal Dutch Shell (LON:RDSA) with 18.1 per cent, with the remainder held via the public through a listing on the São Paulo stock exchange.
In a separate statement, BG reported its first quarter results, increasing revenue by 20 percent year-on-year to US$5.776 billion and operating profit by 21 per cent to US$2.37 billion.
Despite what it called the “uneven nature of the global recovery”, global energy prices remain relatively robust.
In terms of global liquefied natural gas markets, January saw record high flows from the Atlantic Basin to Pacific Basin markets as demand in Asia continued to pull increasing volumes into the region and away from Europe.
On the demand side, Japanese LNG imports reached record levels reflecting the effects of further nuclear units going offline, winter weather and stronger economic performance, BG added.