Snam in talks to buy TAG natural gas pipeline

Snam, an Italian natural gas infrastructure company, has started talks with state lender Cassa Depositi e Prestiti (CDP) to buy the TAG gas pipeline. The Austrian part of the gas pipeline is currently owned by CDP, who purchased the pipeline for US$ 700 million in 2011, from ENI. The remaining 11% share in the pipeline is owned by Austria’s OMV.

The deal, valued at around US$ 918.33 million, would give Snam control over the 380 km strategic pipeline that carries Russian gas through Austria into Italy. According to sources, Snam is looking to complete the acquisition by early 2014.

Snam’s plan to buy TAG comes after the company’s decision to grow its European gas transport footprint, integrating Europe’s patchwork of gas grids. In April, Snam reached a final agreement to buy, along with other investors, the TIGF gas transport and storage business of France’s Total.

During the GIE conference earlier this year, Carlo Malacarne, CEO of Snam, said “Our focus relating to foreign grids will shift to TAG, which could be an investment in line with out strategies, and thus, definitely a grid to which we pay our attention.”

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/06092013/snam_in_talks_to_buy_tag_natural_gas_pipeline/