Enagás and Fluxys acquire the Swedish operator Swedegas from EQT Infrastructure Limited

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Enagás and Fluxys acquire the Swedish operator Swedegas from EQT Infrastructure Limited

Enagás and Fluxys have agreed to jointly acquire Swedegas, which owns and operates Sweden's entire high-pressure gas pipeline network, from EQT Infrastructure Limited.

Enagás and Fluxys will each invest around €100 million (US$108.8 million) in terms of equity and in addition third party debt financing will be provided at competitive terms. Both companies are managed as ownership unbundled transmission system operators (TSO) as modelled by the European Union.

EQT Infrastructure has been advised by Morgan Stanley, Vinge and KPMG.

Swedegas was acquired by EQT Infrastructure in February 2010 and is the owner of Sweden’s entire gas transmission network consisting of 601 km of pipelines, extending from Dragör in Denmark to Stenungsund in Sweden. The company transports approximately 1.2 billion Nm³ of gas annually to distributors and industrial end-users in the southwest region of Sweden.

Stefan Glevén, Partner at Investment Advisor EQT Partners AB, commented:

"It has been a great journey. Since 2010, Swedegas has undergone an extraordinary transformation illustrating the efficiency of EQT’s governance model and industrial approach. With the strong strategic potential of natural gas, LNG and biogas in the energy mix, driven by environmental, cost reduction and energy supply security targets, we believe that Swedegas will continue to benefit from favorable market trends and a new stable regulatory regime. EQT Infrastructure is pleased to sell Swedegas to Enagás and Fluxys, two of the leading European gas transmission companies. We are convinced that these long-term industrial players will carry Swedegas into the next phase of growth."

Lars Gustafsson, CEO of Swedegas, added:

"During EQT Infrastructure’s ownership, Swedegas has changed its strategic direction and has a lot of further potential for the future. In addition to having captured several venues of growth, the organization has been greatly strengthened resulting in an increased commercial mindset and operational excellence. We are excited to keep developing the Company together with Enagás and Fluxys and to, amongst others, continue executing on our strategy of building regional grids and LNG terminals across Sweden."

Jesús Saldaña, Strategy and Business Development General Manager Enagás commented:

"The acquisition of Swedegas is in line with the Enagás’ 2015-2017 Strategic Update. It is within our core business, provides stable and predictable cash flows, fits with the goals of profitability and debt ratios and allows Enagás to participate in all material decisions in a partnership with a high-level player as Fluxys."

Walter Peeraer, CEO Fluxys, stated:

"Swedegas’ management has a strong track record and Fluxys looks forward to team up and continue the Company’s success. Both Fluxys and Enagás are long-standing LNG infrastructure players and we see great opportunities for sharing knowledge with Swedegas’ highly experienced staff and developing the small-scale LNG market in Sweden."

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