ENBW BUYS ENI
German utility EnBW said on Friday it would buy the 50 percent stake owned by Italy's Eni in a jointly-held gas grid company, taking full ownership of an asset that is expected to generate stable returns over the coming years.
EnBW said both parties had agreed not to disclose the purchase price.
Sources familiar with the process told Reuters late on Thursday that a deal had been agreed, putting the value of the stake at more than 150 million euros ($205 million).
"EnBW executes on its gas strategy through expanding its position in the gas supply and transmission business significantly and is also aiming for further growth," Frank Mastiaux, EnBW's chief executive, said in a statement.
Infrastructure investors and utilities are looking to buy into safer assets that yield guaranteed returns, such as power and gas grids, amid turbulent stock markets and low interest rates.
EnBW will buy the 50 percent it does not already own in EnBW Eni Verwaltungsgesellschaft mbH, established in 2002, which comprises gas grid Terranets BW GmbH as well as gas supplier Gasversorgung Sueddeutschland (GVS).
Together, Terranets - which operates a 2,000 km gas pipeline system in the German state of Baden-Wuerttemberg - and GVS made sales of 1.7 billion euros last year and employ 278 staff.
Eni said in October it was in talks with EnBW over the future of EnBW/Eni Verwaltungsgesellschaft, amid speculation the oil and gas group could sell its stake.
|September, 21, 11:00:00|
|September, 21, 10:55:00|
|September, 21, 10:45:00|
|September, 21, 10:40:00|
|September, 21, 10:35:00|
|September, 21, 10:30:00|
U.S. EIA - Energy companies’ free cash flow—the difference between cash from operations and capital expenditure—was $119 billion for the four quarters ending June 30, 2018, the largest four-quarter sum during 2013–18 Companies reduced debt for seven consecutive quarters, contributing to the lowest long-term debt-to-equity ratio since third-quarter 2014
OPEC - Total oil demand for 2018 is now estimated at 98.82 mb/d. In 2019, world oil demand growth is forecast to rise by 1.41 mb/d. Total world oil demand in 2019 is now projected to surpass 100 mb/d for the first time and reach 100.23 mb/d.
ARAB NEWS - Oil exports from southern Iraq are heading for a record high this month, two industry sources said, adding to signs that OPEC’s second-largest producer is following through on a deal to raise supply and local unrest is not affecting shipments.
PLATTS - The International Energy Agency expects the US to account for 75% of the global growth in natural gas exports over the next five years, a bullish outlook for LNG developers facing challenges at home getting projects off the ground and abroad with tariffs affecting trade flows.