June 2010 Vol. 237 No. 6

Projects

Spanish Natural Gas Company Changes Hands

Galp Energia and Morgan Stanley Infrastructure have closed their joint acquisition of certain gas supply and distribution businesses in the Madrid region from Gas Natural Fenosa (Gas Natural).

Galp Energia will be responsible for the supply activity and Morgan Stanley Infrastructure responsible for the distribution activity. The purchase price is Euro 800 million.

The distribution business comprises the regulated low-pressure gas distribution activities of Gas Natural which cover 38 municipalities surrounding the center of Madrid and has 507,000 homes connected to its network. The supply business comprises the regulated and unregulated end customers gas supply activities in the area of the distribution business and provides gas to about 412,000 customers with an annual consumption of around 0.4 Bcm. It also provides electricity to over 8.000 customers.

To carry out the sale of part of its natural gas assets in Madrid, Gas Natural created three companies that are operating in Madrid: Madrileña Suministro de Gas 2010, S.L., Madrileña Suministro de Gas S.U.R. 2010, S.L. and Madrileña Red de Gas, S.A., with the first two responsible for the supply activities, both liberalized and regulated, and the third responsible for the natural gas distribution network.