Naturgy Mulls Sale of LNG Unit: Press
Spanish utility Naturgy is considering the sale of its LNG unit, Bloomberg reported on September 16 citing sources.
Several suitors have approached Naturgy for the business including Spain's Repsol since the first half of the year. The possible sale comes at a time when the global LNG market is experiencing a supply glut that grew as a result of the coronavirus pandemic.
Naturgy's LNG business comprises a fleet of LNG tankers, purchase deals with Nigeria, Qatar, Russia and the US, liquefaction capacity in Egypt – which it failed to sell this year to Italian Eni, its partner in Union Fenosa Gas – and regasification capacity at terminals in Europe. It also markets LNG as an alternative road, rail and maritime transport fuel.
Naturgy saw its core earnings decline 11% year on year in the first half, because of weaker demand for gas and power, reflected in poor LNG sales: volumes were up 4.4% in volume terms, but revenues plunged 43% to €90mn, with the collapse in prices.