Snam, Fluxys Buy Interconnector Stake from E.ON (UK)

Snam and Fluxys have closed the transaction to acquire E.ON’s stake in Interconnector UK, owner and operator of the subsea gas pipeline between the UK and Belgium.

The acquisition is a new step forward in the joint approach of Fluxys and Snam to actively promote further integration of gas markets in Europe and facilitate cross-border trade and flows in both directions between the UK and Italy.

Through today’s transaction, Snam and Fluxys each acquire 50% of E.ON’s 15.09% stake in Interconnector (UK), increasing their joint stake in the company to 31.50%. The total consideration for E.ON’s stake amounts to approximately €117 million. Besides its joint stake with Snam of 31.50%, Fluxys also has a direct stake of 15% in Interconnector and Fluxys shareholder Caisse de dépôt et placement du Québec holds an interest of 33.5% in the company.

Last January, Snam and Fluxys entered into a strategic alliance to promote further integration of gas markets in Europe. In the meantime, both companies have jointly acquired Eni’s stakes in Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator. They also agreed to coordinate their actions to develop physical reverse flow capacity between the Italian-Swiss and German-Belgian borders in order to achieve a full bi-directional link between the UK and Italy.

Carlo Malacarne, CEO of Snam, commented: “The acquisition of E.ON’s stake in Interconnector (UK) is another, concrete step towards a more integrated European gas market, with Snam playing a key-role in developing a gas hub for Southern Europe and enhance security of supply and liquidity of the gas market. In the spirit of the EU’s third legislative package and of our partnership with Fluxys, we aim to provide Europe with an additional capacity corridor for gas supply and connect the Italian market with the gas trading places in Northwest Europe.”

Walter Peeraer, Managing Director of Fluxys, said: “Forging strong partnerships is the cornerstone of our international approach to develop a tentacular asset and capacity portfolio providing for easy cross-border gas flows and trades between the markets and trading places in the UK, Belgium, the Netherlands, France, Germany and Italy. We are looking forward to sharing our cross-European know-how with Interconnector (UK) and further unlock its potential as a strategic bi-directional link between the UK and the gas trading places in mainland Europe.”

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LNG World News Staff, September 26, 2012; Image: Interconnector