Enagás has signed an agreement with Belgian company Fluxys to jointly sell their total stake in Swedish transmission system operator Swedegas to FS Gas Transport for Skr2.04bn ($223.8m).
FS Gas Transport is an indirectly wholly owned subsidiary of First State Investments managed European Diversified Infrastructure Fund II, which owns part of the Swedish gas distribution network.
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Enagás and Fluxys each acquired a 50% share in Swedegas in March 2015.
Swedegas owns and operates the sole gas transmission network in Sweden, with a 600km pipeline network.
Under the terms of the deal, FS Gas Transport will offer Skr1.02bn (€96m) for each stake in Swedegas.
First State Infrastructure Investments partner Marcus Ayre said: “We have significant experience in the European energy transmission and distribution market and it was natural for us to look for further investments in the Swedish gas network sector.
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By GlobalData“The energy market is one which meets our investment criteria as we seek to create long-term, sustainable value for our investors.”
Over the past three years, Swedegas played an instrumental role in developing Sweden into a major growth market for small-scale liquefied natural gas (LNG) in both shipping and industry.
The completion of the transaction is conditional on certain customary conditions, including receipt of approval from the Swedish Competition Authority.
Enagás expects the transaction to provide a return of more than 10% in terms of internal rate of return (IRR) after tax.
The company is focused on the rotation of certain assets outside Spain to make potential new investments and this sale is consistent with this strategy.
In July, a European consortium comprising Snam (60%), Enagás (20%) and Fluxys (20%) reached agreements with the Hellenic Republic Asset Development Fund (HRADF) and Hellenic Petroleum to acquire a 66% interest in Greek natural gas transmission system operator DESFA.
The agreements were signed after the consortium submitted a €535m offer for the privatisation of DESFA.
