State-owned oil company Petróleo Brasileiro SA started the nonbinding phase of its previously announced plan to sell its remaining 10% stake in natural gas transportation and storage unit Transportadora Associada de Gás SA, or TAG, according to a Jan. 17 release.

Petrobras, as the Brazilian oil giant is commonly known, closed a sale of a 90% stake in TAG in June 2019 to a consortium comprised of Engie SA and Canadian investment fund Caisse de dépôt et placement du Québec. In December 2019, Reuters reported that Engie's Brazilian unit wants to acquire Petrobras' remaining 10% stake in TAG.

The sale is part of Petrobras' ongoing plan to reduce debt by selling assets. The divestment program has brought in $15.3 billion as of Oct. 15, 2019, with the Brazilian oil major planning to extend the program to 2024.

TAG holds long-term permits to operate and manage a 4,500-kilometer gas pipeline system in Brazil's north and northeast regions, which has an installed capacity of 75 million cubic meters per day.