Gaz de France and Total agree on division of networks

Gaz de France, the French national gas group, and Total, the French oil and gas group, have signed a letter of intent regarding the division of their two gas pipeline networks. This comes in preparation for the opening of the European sector market for business customers with effect from 1 July 2004.
By that date, Total is expected to take over complete control of the south-western regional gas supply network Gaz du Sud-Ouest, in which it currently holds 70 % to Gaz de France's 30 %.

Gaz de France is expected to acquire the 45 % stake held by Total in Compagnie Francaise de Methane (CFM), which transports gas from the Lacq field in south-western France to other regions of the country, thereby increasing its stake to 100 %.
In order to balance out the resulting reduction in domestic market share from 15 % to 9 % for Total, part of the trading activities of CFM are expected to be transferred back to the oil and gas group, bringing its stake to 11 %. It is also expected to participate in a future project by Gaz de France.