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    Gasunie and Fluxys Fasten Grip on Nel-Pipeline

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Summary

Gasunie and Fluxys have strengthened their grip on the North-German Nel-pipeline by acquiring 10 percent participation. Fluxys also strengthened its position in Interconnector, the gas pipeline under the North Sea.

by: Koen Mortelmans

Posted in:

Natural Gas & LNG News, News By Country, , Belgium, Pipelines

Gasunie and Fluxys Fasten Grip on Nel-Pipeline

The Dutch and Belgian gas transmission network operators Gasunie and Fluxys have strengthened their grip on the North-German Nel-pipeline. Together, they acquired the 10 percent participation, until now held on by the German energy group E.On. However, Wingas, a joint venture between German Wintershall (BASF group) and Russian Gazprom, remains the major shareholder, owning 51 percent.

Gasunie nor Fluxys reveal what they have paid for the Nel-shares. The transaction isn't definitive yet: the German competition authority has to approve the transaction yet. Gas is acquiring some more shares than Fluxys. The Dutch company already owned 20 percent and rises to 25.13 percent. Fluxys enlarges its shares from 19 percent to 23.87 percent.

The Norddeutsche Erdgasleitung (Nel) pipeline runs from the Baltic Sea hub Lubmin –near the hanseatic city of Greifswald– through to Rehden in Lower Saxony. It has a length of 440 km and connects the Nord Stream pipeline with the Rehden-Hamburg gas pipeline and Midal pipeline. 

Fluxys stronger in Interconnector

Fluxys also strengthened its position in Interconnector, the gas pipeline under the North Sea, connecting the Belgian hub in Zeebrugge with Bacton, in England. Fluxys already owned 15% in Interconnector. For a sum not reviled it recently bought the 10 percent participation, until then hold by Conoco-Philips. Canadian investor La Caisse de dépôt et placement du Québec directly owns 23.5 percent and indirectly 10 percent. Gasbridge 1 and Gasbridge 2, both 50-50-filials from Fluxys and the Italian Snam, together own 31.5 percent. The Québec Caisse also is an important Fluxys-shareholder (20 percent). In brief, Fluxys and Fluxys-connected companies control 90 percent in Interconnector. Gazprom owns the remaining 10 percent.

New record beneath the North Sea

Due to the cold weather and the high demand in the UK, Wednesday 20 March, Interconnector was able to write down a new record: during that day it transported for 783 GWh natural gas from the continent to Britain.

Czech echec

The Fluxys investment policy is to participate in –from Belgian point of view– strategic pipelines in the north of West-Europe. But not at any price. Last week, RWE (Germany) confirmed the sale of its Czech gas transmission system Net4Gas to a consortium between insurance company Allianz and infrastructure group Borealis. Earlier, several media had indicated Fluxys and its allies also were interested. However their –at no moment officially confirmed– bid at some point wasn't taken into consideration any longer by RWE. Net4Gas holds the exclusive licence for the operation of more than 3,600 kilometres of pipelines in the Czech Republic and is responsible for the national transmission of natural gas as well as international gas transit. RWE sees the sale as a further milestone in the "divestment" programme to reinforce its capital base and its financial strength.

Koen Mortelmans