UK: Snam & Fluxys to Take Stake in Interconnector

Belgian gas company Fluxys and Italy's gas pipeline operator Snam have said that both companies will take a stake in E.ON's UK-pipeline Interconnector for €127 million.

Through the agreement, the companies will take a 15.09 per cent stake in the underwater gas pipeline.

"Today's announcement represents a further confirmation of Snam's commitment to becoming a major integrated player in the European regulated gas business through the development of the North-South corridor and the creation of a Southern European gas hub," CEO of Carlo Malacarne said.

"The agreement also fosters our partnership with Fluxys and gives a further contribution to enhancing flexibility and security of supply in Europe, in line with the recommendations and provisions of the EU’s third legislative package."

Walter Peeraer, Managing Director of Fluxys, said the sale would enabe gas flow between the UK and Italy.

"This new agreement strengthens our partnership with Snam to enhance security of supply by enabling South to North flows between Italy and the UK," he said.

"Our venture will connect the gas trading places in the Northwest and the South of Europe and stimulate deeper liquidity across the European gas system."

The sale once more increases Fluxys' and Snam's interest in the UK pipeline. Earlier this year, both parties took Eni's entire 16.4 per cent stake in Interconnector (UK). 

The E.ON sale must now be approved by Interconnector's Board and by the relevant authorities.