Snam completes purchase of Edison’s stake in Adriatic LNG
The Italian natural gas transmission system operator, Snam, has completed the acquisition of Edison’s 7.3 percent stake in the Adriatic LNG.
In addition, Snam acquired 100 percent of the shares of Infrastrutture Trasporto Gas S.p.A. (ITG) from Edison.
The total consideration of the transaction, which will have economic effect starting from today, is equal to €225 million ($265.3 million), Snam said in a statement.
Moreover, should Adriatic LNG sign new contracts for the utilization of the terminal capacity, Snam will recognize to Edison a potential additional consideration under the form of an earn-out.
With an annual transmission capacity of 9.6 billion cubic meters, ITG is the third player in the Italian gas transportation market. It operates the 83.3 km gas transmission pipeline which extends from Cavarzere (Veneto) to Minerbio (Emilia Romagna) connecting the Adriatic LNG regasification terminal to the Italian gas transmission network in Minerbio.
Adriatic LNG owns the gravity-based regasification terminal off Rovigo. Operating since 2009, it has long-term contracts guaranteed for approximately 80 percent of the capacity and medium-term contracts for approximately 12 percent.
Its annual regasification capacity is equal to around 8 billion cubic meters, representing 50 percent of Italian LNG import capacity and over 10 percent of domestic gas consumption.
1 EUR = 1.17927 USD