EC Approves Eni TAG Pipeline Sale

The European Commission has approved the sale of Italian Eni's 89 per cent stake in the Trans Austria Gasleitung (TAG) pipeline to Italian state bank Cassa depositi e prestiti (CDP). 

The approval completes the sale made between Eni and CDP in June of this year. The sale was completed at €675 million.

Prior to the sale, the European Commission requested that Eni sell its stakes in the pipeline to increase competition in the market in line with an antitrust ruling. At the same time, Eni was also ordered to divest in shares in the companies involved with the TENP and Transitgas pipelines.

"Access to infrastructure is key for the integration of gas markets, price competition and overall security of supply in the European Union," Competition Commissioner Joaquín Almunia, Vice-President of the Commission said in September 2010. "The legally-binding commitments will ensure that capacity hoarding and degradation will no longer take place on the transport pipelines into Italy and that the proper investment incentives will prevail."

Eni sold its stakes in TENP and Transitgas to Belgian Fluxys at the end of last month.