Belgian Fluxys and Spanish Enagás acquire Swedish Swedegas

European gas transmission system operators (TSO) are clustering more and more. The Belgian TSO Fluxys and its Spanish counterpart Enagás together acquire Swedegas, the owner and operator of Sweden's entire high-pressure gas pipeline network.

Enagás and Fluxys will each invest around €100 million in terms of equity and, as soon as the contract is signed, each will own 50% of Swedegas. In addition third party debt financing will be provided. Both companies are managed as unbundled - not ownership linked with producers and suppliers -TSO as modelled by the European Union. Because neither of the buyers have activities in Sweden and because their turnover doesn't exceed the allowed amount, the transaction doesn't need the approval of the European Commission.

Seller is EQT Infrastructure, a EUR 1.2 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe and North America. It's investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services. EQT Infrastructure is one of the 17 investment funds managed by The Swedish group EQT, the leading private equity group in Northern Europe.

Swedegas owns around 600 km of high-pressure gas pipelines and the Sallen underground storage facility, located nearby Halmstad. It is also developing a bunkering and small scale LNG terminal in Gothenburg (40% Swedegas), categorised as a Project of Common Interest (PCI) by the EU. It works in a stable regulatory framework, approved for the next four years (2015-2018).

This transaction offers a strategic fit with the core business and the international growth strategy of Enagás and Fluxys. The joint venture between the two companies enables a common line of interest to be pursued and synergies between Enagás, Fluxys and Swedegas to be unlocked. The acquisition of Swedegas also provides stable and predictable cash flows for the new owners. 

Fluxys is a major gas transit, storage and terminal operator, present in Belgium, the UK, the Netherlands, France, Switzerland and Germany as well as under the North Sea. Enagás manages the Spanish gas system and is the main carrier of natural gas in Spain, where the company owns approximately 11,000 km of pipelines, five regasification plants and three underground storage facilities. Enagás is also present in Mexico, Chile and Peru. Both Fluxys and Enagás are partners in the Trans Adriatic Pipeline (TAP) project, linking Turkey with Italy via Greece and Albania.

Koen Mortelmans