Snam and Fluxys have signed a Memorandum of Understanding for developing and marketing reverse flow capacities from south to north between Italy and the UK.
With this Memorandum of Understanding, both companies enhance their cooperation in the spirit of the EU Third Energy Package for a further integration of European gas markets. On the same day, Snam and Fluxys also completed the joint acquisition of Eni’s stakes in Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator.
Carlo Malacarne, CEO of Snam, commented: “The signing of this MoU fosters our ties with Fluxys, which confirms to be a strategic partner supporting Snam’s international development strategy. The creation of the reverse flow capacity, as well as the completion of the acquisition of Eni’s stakes in Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator, give concreteness to a more interconnected and flexible European gas market, in line with the evolution of legislative and regulatory framework and with the needs of the gas system’s stakeholders.”
Walter Peeraer, Fluxys Managing Director, said: “With this MoU, we are moving ahead in our cross-border approach based on a strong partnership with Snam. We will work closely together to create a fully bi-directional north/south transmission axis enabling south to north flows between Italy and the UK. Through this reverse flow project with Snam, we will establish a fully functional market providing for easy gas transfers between the gas trading places in Germany, Italy, Belgium, France, the Netherlands and the UK, which will pave the way for deeper market flexibility and liquidity. This fully fits in with our strategy to strengthen security and diversification of supply, promote cross-border flows and connect the gas trading places in the Northwest and the South of Europe.”
MoU: coordinated development and marketing of reverse flow capacities
In this Memorandum of Understanding, Snam and Fluxys agree to jointly take actions for the development of physical reverse flows from the Italian-Swiss border at Passo Gries through Switzerland and into Germany. Both companies will evaluate the necessary investments in their respective infrastructure and will discuss the organization of a coordinated market consultation by the end of 2012 to assess the interest for the reverse flow project from Passo Gries to Eynatten at the Belgian border.
Joint acquisition of Eni’s stakes
On 3 August Snam and Fluxys also closed the transaction through which each company acquires 50% of Eni’s stakes in Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator. This joint acquisition follows the agreement that Fluxys, Snam and Eni reached in February.
With the completion of this transaction, Snam and Fluxys acquire the following stakes from Eni’s subsidiaries on a 50/50 basis:
The total consideration for the above mentioned stakes amounts to € 145 million.
[mappress] LNG World News Staff, August 03, 2012; Image: Fluxys