Page 16 - EurOil Week 38

EurOil INVESTMENT EurOil

OMV exits Austrian gas grid in

€271mn deal

AUSTRIA AUSTRIAN oil giant OMV has shed its remain- regulated gas business, Verbund is looking to
ing interest in gas pipeline operator Gas Connect expand in it.
OMV is looking to raise Austria in a deal with Verbund, the country’s top “In an increasingly volatile environment, this
$2.3bn from disposals power producer. transaction strengthens our share in the regu-
by the end of 2021. The two companies announced the transac- lated business and ensures stable earnings con-
tion on September 23, noting that closure was tributions,” Verbund’s deputy chairman, Michael
expected in the first half of 2021. Verbund will Strugl, said.
pay OMV €271mn ($317m) for its 51% stake in The company already operates the Austrian
the business and also assume responsibility for power grid, and sees gas pipelines as a means of
its liabilities to the oil firm. Those liabilities came developing its hydrogen energy business.
to €166mn at the end of 2019. “The importance of the gas network will
OMV is on a divestment drive aimed at rais- grow significantly in future, as it will increas-
ing €2bn ($2.3bn) from disposals by the end of ingly be used to transport green gases such as
2021. The goal is to improve its financial standing green hydrogen,” Strugl continued. “In the long
amid pandemic-related volatility, while also rais- term, we see a global hydrogen economy, one in
ing funds to gain a majority share of petrochem- which large quantities of energy need to be trans-
icals group Borealis from the UAE’s Mubadala. ported internationally. This makes the purchase
OMV said it would free itself of over €580mn of Gas Connect Austria a key strategy step for
of debt thanks to the Verbund deal. Verbund.”
Gas Connect operates a 900-km pipeline grid Gas pipeline operators across Europe are
in Austria and also markets and provides trans- looking at hydrogen development more seri-
port capacity at the country’s border points. ously than ever before. The European Com-
OMV offloaded a 49% interest in the business mission’s unveiling in the summer of a bloc
four years ago to Allianz and Snam for €601mn. hydrogen strategy has significantly galvanised
While OMV wants to move out of the interest in the unconventional fuel. ™

P16 www. NEWSBASE .com Week 38 24•September•2020