Origem Energia Acquisition Advances with Four Serious Bidders Amid Strategic Expansion Plans
Four bidders have progressed in the $1.5-$2 billion acquisition process of Origem Energia, Brazil's fourth largest natural gas producer, amid plans to build new power plants and expand storage capacity.
- • Four bidders advanced to the second phase of Origem Energia's acquisition process.
- • The acquisition is valued between $1.5 billion and $2 billion, with completion post-elections.
- • Origem Energia is Brazil's fourth largest natural gas producer with 1.45 million cubic meters daily output.
- • The company plans to build seven power plants totaling 371 MW, targeting $500-$600 million Ebitda by 2029.
Key details
The acquisition process of Origem Energia, one of Brazil's prominent natural gas producers, has advanced to the second phase with four companies submitting binding proposals. Valued between $1.5 billion and $2 billion, the sale is expected to conclude after the upcoming elections, marking a significant transaction in Brazil's energy sector.
Origem Energia, controlled by Prisma, ranks as the fourth largest natural gas producer in the country, with a daily output of 1.45 million cubic meters and 12,300 barrels of oil equivalent based on the first quarter. The company operates across Bahia, Alagoas, Rio Grande do Norte, and Espírito Santo, engaging in LNG exploration, storage, distribution, and energy generation via thermal power plants.
Among the bidders, Eneva submitted an offer but remains uncertain about its ongoing participation, whereas Âmbar, managed by the Batista brothers, opted not to partake in the competitive process. Foreign investors, including the American firm New Fortress Energy, are also engaged in the bid.
Origem Energia has ambitious plans to boost its capacity by constructing seven power plants totaling 371 MW in Maceió, Alagoas. Powered by its own gas production and winning contracts from the energy capacity reserve auction (LRCap), these projects anticipate generating $500-$600 million in Ebitda by 2029. The investment required is estimated at R$ 2 billion, expected to deliver around $180 million in annual Ebitda once operational.
Further investments include a $100 million plan over three years to expand the company's gas storage capabilities to one billion cubic meters per day. Currently, negotiations focus on finalizing binding offers, with both Eneva and Origem declining to comment on ongoing talks.
This acquisition is seen as a pivotal moment for Origem Energia's future growth trajectory and Brazil's natural gas market, reflecting heightened interest from domestic and international players focused on expanding energy infrastructure and production capacity.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
