Belgium: Fluxys G, Snam Buy Gas Stakes from Eni

Snam and Fluxys G said that they have reached an agreement to acquire Eni’s stakes in Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator.

This joint acquisition, to which Snam and Fluxys G are to contribute 50% each, is a first important milestone in pursuing the aim of an integrated European gas network and follows the announcement in January that the two companies would evaluate opportunities to jointly pursue potential developments in the European gas sector, with the ultimate aim of enhancing flexibility and security of supply in Europe, the companies said in a statement.

Carlo Malacarne, CEO of Snam, said: “Today’s agreement is the first step towards Snam becoming a major integrated player in the European regulated gas business, with a view to promoting cross-border bi-directional flows and increasing the flexibility of the gas system, as outlined in the EU’s Third Energy Package. The agreement with Fluxys, which is consistent with our stated strategy to secure diversified gas supplies to Italy through our integrated network of pipelines, storage sites and LNG facilities, contributes to the creation of a Southern European gas hub.”

Walter Peeraer, Managing Director of Fluxys G, commented: “The Fluxys group’s strategy is to enhance security of supply and liquidity of the market, to promote cross-border flows and connect the gas trading places in the Northwest and the South of Europe. In our cooperation with Snam, we are looking forward to sharing our cross-European know-how with Interconnector (UK) to support the company’s development also after its exemption period until 2018. We will also work together with Snam to enable south to north flows in order to create a full bi-directional north/south transmission axis, enabling deeper trading liquidity across the gas system.”

Under the agreement signed today, Snam and Fluxys G are together to acquire the following stakes from Eni:

• 16.41% stake in Interconnector (UK), owner and operator of the subsea pipeline between the UK (Bacton) and Belgium (Zeebrugge) providing a strategic bi-directional link between the UK and the continental gas trading places.
• 51% stake in Interconnector Zeebrugge Terminal SCRL, the terminal and compressor facilities linking the Interconnector pipeline to the Belgian gas transmission system.
• 10% stake in Fluxys G subsidiary Huberator, operator and service provider for the Zeebrugge gas trading hub.

The total consideration for the above mentioned stakes amounts to € 150 million.

Snam and Fluxys G said that they expect to complete the transaction by the second half of 2012. Prior to completion, the transaction requires approval from the relevant authorities as well as the Boards of Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator.

The transaction was approved by the Board of Directors of Snam following the positive ruling by the Committee for Internal Control, pursuant to the Consob regulations and Snam’s procedure regarding transactions with related parties, the companies added.

[mappress]

LNG World News Staff, February 23, 2012; Image: Interconnector