October 31, 2008
GDF Suez, Eni Finalize Energy Asset Transfer Agreements
French energy group GDF Suez and Italian integrated energy giant Eni have finalized various gas and electricity contracts based on agreements signed in May 2008.
Eni will sell to GDF Suez 1,100MW of virtual power plant (VPP) capacity in Italy, structured on the model of combined cycle gas turbine (CCGT) plants, over a period of 20 years. The cost of reserving this capacity is E1.2 billion.
Eni will also sell to GDF Suez various exploration and production assets in the UK, the Gulf of Mexico, Egypt and Indonesia for around E273 million.
The two energy groups have also made an agreement on the acquisition of the gas distribution network serving the municipality of Rome and six neighboring municipalities for E1 billion. This agreement is in particular subject to the approval of the municipalities. This network supplies 1.3 million customers.
Concurrently, in line with the objectives previously announced to the European Commission related to the merger between Suez and Gaz de France, GDF Suez has finalized the sale of its shares in Distrigas to Eni.