Gas Natural Fenosa to buy CGE, eyes LNG expansion

LNG player Gas Natural Fenosa of Spain said it has signed a deal to acquire Chile’s Compañia General de Electricidad (CGE) for EUR 2.6 billion.

Gas Natural Fenosa plans to buy 100 percent of CGE’s stock, taking a minimum initial stake of 54,19 percent, according to a statement by GNF.

CGE, an electricity distribution company and a natural gas distributor, is also involved in the LNG business through its participation in the Quintero import terminal.

“Chile is expected to become one of the main LNG import markets ruled by international  pricing mechanisms in which GNF could leverage the potential of its LNG platform,” GNF said.

GNF operates nine LNG tankers and has stakes in liquefaction plants in Damietta and Qalhat, and in regasification plants: Sagunto, Reganosa and Ecoeléctrica.