Jul 08 - ENI and Altergaz Enter the Shareholding of Gaz De Bordeaux Energie Services Increasing Their Presence in the French Gas Market

Source Press Release
Company ENI S.p.A. 
Tags Corporate Deals, Deals, Pipelines/ tankers/ distribution
Date July 15, 2008

An agreement was signed today by Eni and Altergaz (participated by Eni with a 38% share) with Societé du Gaz de Bordeaux SAEML, gas distributor in the municipality of Bordeaux, for the acquisition of 17% respectively in the shareholding of Gaz the Bordeaux Energie Services SAS. Starting from 1st October 2008 all the commercialization activities of Societé du Gaz de Bordeaux SAEML will converge in Gaz the Bordeaux Energie Services SAS.

The agreement has been signed in the framework of France's liberalised residential gas market, which started in July 2007. Eni and Altergaz will support the development of Gaz de Bordeaux Energie Services through a 10-year supply of some 2.65 terawatt/hour per year in competitive conditions. This amount of gas will cover around half of the company's needs, which amount to some 5.3 terawatt/hour per year.
On the strength of this partnership, Gaz de Bordeaux will market the gas supplied by Eni and Altergaz to the residential, commercial and industrial markets, which comprise more than 250,000 potential customers.

This agreement will lend further impetus to Eni's development plan in the French gas market and will strengthen Eni's role as leading gas supplier in Europe, in line with the international growth strategy of the company in sales abroad.

Eni has been present in France since 2003 and operates in every segment of the gas market. It directly supplies natural gas to industrial customers through its subsidiary in France and to residential and professional users through its partnership with Altergaz and, following today's agreement, with Gaz de Bordeaux as well. In the medium term Eni expects to increase its sales in the French gas market from 25 terawatt/hour per year currently, to more than 50 terawatt/hour per year (Altergaz sales included), which will represent a market share of 10%.
Eni is the European market leader in terms of gas sales with an 18% market share and leverages on a unique competitive positioning thanks to the availability of gas coming both from its own production and from long-term supply contracts. In 2007 Eni's sales of gas reached 99 billion cubic meters.

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