Jun 07 - ENI Signs Agreement for the Acquisition of a Stake in Altergaz, a Leading Operator in France's Gas Market

Source Press Release
Company ENI S.p.A. 
Tags Corporate Deals, Deals, Pipelines/ tankers/ distribution
Date June 28, 2007

Thanks to this partnership, Altergaz will distribute gas supplied by Eni to France's retail and commercial market, which counts for more than 60% of overall gas volumes sold in France with a potential of 11.5 million customers. 

Eni signed today in Paris with Altergaz, the main independent operator in France's gas market, the agreement for the acquisition of a significant stake of the company and the distribution of natural gas to end users and small enterprises in France. Altergaz is listed in the non-regulated Euronext market in Paris.

The agreement was signed within the framework of the liberalization of the residential gas market in France starting on 1 July 2007. Eni will sustain the development of Altergaz through the supply of significant volumes of gas up to 1.3 billion cubic meters per year at competitive conditions, over a period of 10 years.

Thanks to this partnership, Altergaz will distribute gas supplied by Eni to France's retail and commercial market, which counts for more than 60% of overall gas volumes sold in France with a potential of 11.5 million customers.

Eni will also acquire 2.5% of the joint stock of Altergaz and carry out a reserved capital increase amounting to 18.9 million euro. The transaction will give Eni a 27.8% stake in Altergaz and joint control of the company through a shareholders agreement with the founding partners. In 2010 Eni will also have the right to acquire the shares currently owned by the founding partners, thus acquiring direct control of Altergaz.

The agreement is subject to the approval of the capital increase by the Extraordinary Meeting of Altergaz shareholders which will soon be convened.

The agreement is a further step in Eni's development plan for France's gas market and will strengthen its leadership in European gas supply, in line with the company's international development strategy for gas sales.

Gas Market in France

The French gas market is the fourth in Europe in terms of demand, which amounts to 48.6 billion cubic meters of gas per year. Great Britain ranks first (96.7 billion cubic meters per year), followed by Germany ( 94.8) and Italy.

French company Gaz De France is the fist player in the gas market in France and holds a 79% of market share followed by Total (9%) and Suez-Distrigaz (3%).

79%  9%  3%  2%  2%  2%  1%  1%  1%  100% 

Eni gas activities in France

Eni is the first player in gas sales in Europe and has an unique competitive positioning thanks to its availability of gas coming from both production and long-term supply contracts. In 2006 gas sales in Europe reached 91.9 billion cubic metres, amounting to 18% of the European market.

Eni has been operating since 2003 in France, where it sells natural gas to industrial clients and wholesalers. Eni is pursuing a marketing policy to gain market share, in particular in the industrial segment which presents good profitability and development perspectives. In the medium term, Eni expects to raise its current sales level of 1.5 billion cubic metres (bcm) of gas per year up to 5 bcm per year, equal to a 10% market share.

In November 2004 Eni obtained the authorization to supply industrial customers and wholesalers. Since August 2005 Eni extended its supplies also to MIG (public utility services) clients. Thanks to the agreement with Altergaz, one of the main independent players in France's gas market, Eni will also enter the residential segment.


Energy figures and gas consumption in France

Gas consumption  48.51 
Gas imported  51 
Percentage of gas consumed in France compared to the whole energy market  22.3% 

*Source: figures on gas industry in France (2005)

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd