June 14, 2016 / 12:57 PM / 2 years ago

Spain's Ferrovial in Peru gas pipeline stake talks -report

MADRID, June 14 (Reuters) - Spanish engineering and services company Ferrovial is in advanced talks to acquire 55 percent of Peru’s Gasoducto Sur Peruano (GSP) project, currently controlled by Brasil’s Odebrecht, Spanish online newspaper El Confidencial reported on Tuesday.

A Ferrovial spokesman declined to comment on the report.

The 30-year concession to build and operate over 1,000 kilometres of pipeline to pump natural gas across the south of Peru is expected to require an investment of around 4.4 billion euros ($5 billion), of which Ferrovial would assume 2.4 billion euros through its affiliate Cintra, the report said.

Ferrovial could join with Spanish gas operator Enagas , which holds 25 percent of GSP with Peruvian associates and is also interested in acquiring a further 6 percent, El Confidencial said.

Enagas also declined to comment.

Excluding debt, the project should require equity of around$700 million, brokerage Haitong said in a investor note.

“For Ferrovial, this would be an unconventional investment, so this highlights Ferrovial’s difficulties in finding good investment opportunities in its traditional segments of motorways and airport infrastructure, in our view,” Haitong said.

$1 = 0.8910 euros Reporting by Robert Hetz; writing by Paul Day; editing by Sonya Dowsett and Jason Neely

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