Eni Makes €150M Pipeline & Terminal Sale to Fluxys G & Snam
Eni is to receive €150 million as a result of the sale of its stakes in pipeline Interconnector (UK), the Interconnector Zeebrugge Terminal and Huberator to Fluxys G and Snam. Fluxys G and Snam will take the a 50/50 share of the assets each as part of a joint venture.
Under the sale, the Fluxys G and Snam joint venture will take Eni's 16.41 per cent stake in Interconnector (UK), as well as a 51 per cent interest in the Interconnector Zeebrugge Terminal and a 10 per cent stake in Huberator.
Snam and Fluxys G say the acquisitions follow a joint plan to pursue together European gas sector projects and is a "first important milestone" in integrating the European gas network.
CEO of Snam, Carlo Malacarne said the sale would contribute to Snam becoming a major player in Europe.
"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," he said.
"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."
Managing Director of Fluxys G, Walter Peeraer said the working relationship with Snam would allow the company to link up important gas links across Europe.
"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," he said. "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."
The sale will go ahead pending approval from the relevant government authorities and the boards of each sold asset. Fluxys G and Snam expect the sale to be completed by the second half of this year.