China State Grid is interested in the energy assets in Brazil of the Spanish energy group Abengoa, news agency Reuters reported this week.
The agency quoted sources saying officials from the Chinese state-run utility firm had recently visited energy transmission projects in Brazil being constructed by Abengoa. A month ago Abengoa had confirmed the Chinese group’s interest in its Brazilian investments.
“There is interest in Abengoa assets but no formal proposal has been made,” China State Grid told Reuters.
Abengoa asked for creditor protection last year due to mounting debts. Since then it has reportedly mothballed existing investments and works in Brazil. Reuters estimated the Spanish group has about 6,000 kilometres of transmission lines still under construction in the South American nation.
Since its debut in Brazil’s energy sector in 2010, China State Grid has invested more than US$1 billion in the market, the report said.
