Austria’s leading electricity company, Verbund, has entered exclusive negotiations with OMV for the purchase of a 51% stake in gas pipeline company Gas Connect Austria, Kallanish Energy reports.
The asset sale is part of OMV’s €2 ($2.23) billion divestment target by 2021. The program will help the company fund its $4.68 billion share acquisition in Borealis. (See related story)
Gas Connect Austria constructs and operates natural gas high-pressure pipelines in Austria. It’s also responsible for the marketing and provision of transport capacity at border points and the transport capacity required for domestic gas demand.
The other 49% stake is owned by Gasinfrastruktur – a joint venture between Allianz Group (60%) and Snam (40%).
OMV said Thursday it intends to exit the regulated gas transport business to secure continued profitable growth. At the same time, it will remain active in international gas logistics, gas storage and gas supply & trading businesses.
The oil and gas company, which runs gas storage facilities in Austria and Germany, sold around 137 terawatts hour (TWh) of gas volumes in 2019. Hydrocarbons production averaged 487,000 barrels per day of oil equivalent last year.
In a separate statement, it also announced it started the sales process for its German filling station business, which owns 287 stations in southern Germany.
This post appeared first on Kallanish Energy News.