Belgium's Fluxys and Italy's Snam have signed an agreement with Eni to jointly acquire its 16.4% stake in the UK-Belgium gas Interconnector and 51% stake in the Interconnector Zeebrugge terminal, Fluxys said Thursday.
In a deal worth Eur150 million ($199.4 million), the Belgian and Italian gas companies would also acquire Eni's 10% stake in Huberator, the operator and service provider for the Zeebrugge gas trading hub which is a subsidiary of the Fluxys group.
The UK-Belgium Interconnector (UK) is a bidirectional link between the UK and continental gas trading hubs. Through the deal, Italy's Eni would sell the 5% share in the company of which it directly owns, as well as the 11.4% share held by its subsidiary Distrigas.
Quebec Province owns 43.5% of the pipeline company through two investment arms, while other minor shareholders include Conoco Phillips, E.ON Ruhrgas and Gazprom.
The acquisition by the Belgian and Italian companies follows follows their announcement in January that they would jointly pursue potential developments in the European gas sector with the aim of enhancing flexibility and security of supply in Europe.
"The agreement with Fluxys, which is consistent with our stated strategy to secure diversified gas supplies to Italy through our integrated network of pipelines, storage sites and LNG facilities, contributes to the creation of a Southern European gas hub," said Carlo Malacarne, CEO of Snam.
The transaction requires approval from regulatory authorities as well as the boards of Interconnector (UK), Interconnector Zeebrugge Terminal and Huberator.
Fluxys and Snam expect the transaction to be completed by the second half of 2012.
