Spotlight: Engie Brasil’s capex, project pipeline

Engie Brasil Energia has raised its capex projection for 2025 from 3.30bn reais (US$572mn) to 3.77bn reais, up 15% from the estimate announced in the last quarter.  

Disclosed in the company’s 3Q24 investors presentation released on Wednesday, the new capex projection focuses on expansion and maintenance projects.

Despite the increase, the investment next year will be significantly lower than the 9.95bn reais forecast for 2024. 

Engie Brasil Energia's total investments in 3Q24 amounted to 1.87bn reais, of which 1.79bn reais was earmarked for project construction. 

The Serra do Assuruá wind complex received 1.06bn reais, followed by the Assú Sol PV solar complex (593mn reais), Asa Branca Transmissora de Energia transmission project (55mn reais), other transmission lines (8mn reais), and the Santo Agostinho wind farm phase I (2mn reais). 

The recovery of the Paracatu PV solar farm demanded 70mn reais, while 47mn reais went to projects to maintain and revitalize Engie’s generation park, and 28mn reais to the modernization of the Salto Osório, Jaguara and Miranda hydroelectric plants. 

Projects being deployed

Made up of 24 wind farms being implemented in a single phase in Gentio do Ouro municipality in Bahia, Serra do Assuruá has expected installed capacity of 846MW and estimated commercial capacity of 410MWa (average MW). 

The energy produced will be entirely directed to the free market, and can even serve customers in the self-production energy market. 

Generating around 3,000 direct and indirect jobs in the region, the estimated investment is 6bn reais. 

Assú Sol is located in the municipality of Assú, in Rio Grande do Norte, and will have installed capacity of 895MWp and estimated commercial capacity of 229MWa. 

With planned investment of around 3bn reais, the energy is being directed entirely to the free market. 

Awarded in the first power transmission tender of 2023, the 1,000km Asa Branca line will involve estimated capex of 2.67bn reais.  

Located in the states of Bahia, Minas Gerais and Espírito Santo, the project involves four 500kV single-circuit transmission lines.

The maximum deadline for starting operations is March 2029, which is expected to be brought forward by at least 24 months.

Projects under development 

– Santo Agostinho wind complex – phase II, in Rio Grande do Norte (279MW);

– Umburanas wind complex – phase II, in Bahia (250MW);

– Campo Largo wind complex – phase III, in Bahia (250MW);

– Santo Agostinho PV solar complex in Rio Grande do Norte (509MW);

– Campo Largo solar complex in Bahia (308MW); and

– Alvorada solar complex in Bahia (90MW).

In addition to these projects, Engie said it continues to analyze opportunities in regions with high photovoltaic potential, as well as partnerships that will accelerate the development of this energy source. 

Natural gas transport

Engie is the controller of Transportadora Associada de Gás (TAG), which operates 4,500km of high-pressure gas pipelines along the coastline of the southeast and northeast, plus a stretch between Urucu and Manaus, in Amazonas.

TAG has several projects planned for the next five years, which exceed 5.2bn reais in investments. 

Approximately 55% of this amount relates to projects to expand transportation capacity or extending its pipeline grid. 

Projects under construction

– Gasfor II, in Ceará, is an 84km gas pipeline to optimize the grid, demanding investment of 430mn reais. Work has been completed and the issuance of the operating license is pending;

– Interconnection between the Catu-Pilar gas pipeline and the Sergipe LNG terminal;

– an access connection contract with Centrais Elétricas de Sergipe (Celse), a member of Eneva group, was signed in June 2022, involving investment of 380mn reais. Work was completed in September 2024 and operations began in October.

– Itagibá delivery point, in Bahia, which will serve the local distribution company on the northern stretch of the Gasene pipeline. This project required an investment of 23mn reais. Work has been completed and the operating license is expected for the fourth quarter.

Projects under development

– Itajuípe compression station, located in the northern section of Gasene, to increase current transportation capacity by 3Mm3/d (million cubic meters per day);

– the Buriti delivery point, located along the Urucu-Manaus gas pipeline, will be a new exit point in Manaus, designed to meet local thermoelectric demand;

– connection of the Açu port regasification terminal to the Cabiúnas-Vitória gas pipeline, 45km long and with transport capacity of 18Mm3/d. The term of commitment for the conceptual project was approved at the end of 2022. 

Storage

TAG and Origem Energia have signed a non-binding agreement to develop the first natural gas storage project in Brazil. Total estimated investment would be US$200mn, if the project becomes viable. In the initial phase, storage capacity will be 51Mm3/y. In the long term, capacity could reach 500Mm3/y.

In addition, other projects in different study phases could require around 20bn reais in investments, representing significant growth potential, Engie said in the 3Q24 report.