Brookfield to buy Reliance’s Pipeline Infra for Rs 13,000 cr

Brookfield has announced it will acquire Pipeline Infrastructure Pvt Ltd (PIPL), a Reliance Industries entity, for Rs 13,000 crore through its Infrastructure Investment Trust (InvIT).

Following the deal, the existing pipeline usage agreement has been reworked with the reserved capacity being reduced to 33 million metric standard cubic metre per day (mmscmd) against the existing 56 mmscmd. Further, any unutilised capacity payment by RIL will be the difference between Rs 500 crore a quarter and actual revenue earned by PIPL, a Brookfield statement said.

As per the deal, Reliance Industries will continue to be entitled to transport gas, either by itself or of any customers, free of cost against any outstanding unutilised capacity payments.

RIL will be entitled to a significant participation in the net earnings of PIPL.

RIL’s current investment in preference shares valued at Rs 4,000 crore would continue and will be converted into equity after 20 years.

After 20 years, RIL has the right to acquire equity shares of PIPL held by the InvIT at an equity value of Rs 50 crore, the release said.