ENI to sell Trans-Austria Gas pipeline to Cassa Depositi e Prestiti
Italian gas and oil company ENI said it is selling its 89-% stake in the Trans-Austria Gas pipeline TAG, to Italian state lender Cassa Depositi e Prestiti, in a deal worth EUR 675 mm ($ 986 mm), in order to settle a dispute with the European antitrust regulators.
The natural gas pipeline comes from the Slovak-Austrian border in the south, near the border with Italy, transporting natural gas from Russia to Italy and Austria. It is managed by Trans Austria Gasleitung, a partnership between ENI and Austria's OMV, which owns the remaining stake in the pipeline.
The sale includes a payment of EUR 483 mm and reimbursement of a shareholder loan of EUR 192 mm granted by ENI to the company.
The TAG gas pipeline, which is 89-% owned by ENI and 11-% by Austria's OMV, transports Russian gas from the Slovak border via Germany and Austria into Italy and is considered strategic by the Italian government.
The Brussels-based European Antitrust Commission (EC) had agreed to drop antitrust charges against ENI after it agreed to sell some pipelines. In order to boost competition in Italy's gas market, EC said in 2009 that ENI may have abused its dominant position by limiting its investment in the gas pipeline network.
EC dropped charges in 2010 against ENI after it agreed to sell its Transitgas, TENP and its TAG pipeline.
The sale will not only open up Italy's natural gas market, but also lower the price of gas to customers.
"This operation is part of the commitments taken by ENI in response to the European Antitrust Commission ruling on September 29, 2010, and it is subject to its approval," the Italian company said.
