05 April 2013 14:44 [Source: ICIS news]
LONDON (ICIS)--French oil, gas and petrochemicals major Total has signed a definitive agreement to sell its natural gas transport and storage business in south-west France – Transport et Infrastructures Gaz France (TIGF) - to a consortium of buyers, the companies said on Friday.
The buyers are Snam, an Italian gas transport and storage operator; GIC, a Singaporean sovereign fund; and EDF, the French electricity and power major. Snam is taking a 45% stake, while GIC and EDF are taking 35% and 20% respectively.
Pau-based TIGF is described as a strategic platform for the interconnection of European gas markets. It employs 500 people who operate a 5,000km gas pipeline network and gas storage sites in Lussagnet and Izaute.
Financial terms were not disclosed. However, according to information on EDF’s website, TIGF has an enterprise value of €2.4bn ($3.1bn).
The closing of the deal is subject to regulatory approvals.
The divestment is part of Total's 2012-2014 asset sale programme of $15-20bn. Last month, Total sold a stake in an oils sands upgrading joint venture in Canada’s Alberta province for about $500m.
($1 = €0.77)
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