Gaz de France Acquires Preussag Energie Assets
Gaz de France, present in Germany via its subsidiaries EEG (exploration-production), Megal (transmission) and Gasag (distribution), is strengthening its integration on this market by acquiring the German exploration-production, transmission and storage assets, and the natural gas marketing activities of Preussag Energie, a subsidiary of TUI AG.
The hydrocarbons reserves covered by this acquisition, located in the north-west German basin, comprise an estimated 25 billion cubic meters of natural gas and 50 million barrels of oil. Annual plateau production, currently totaling around 1.4 billion cubic meters of natural gas and 4 million barrels of oil, will raise the Group's natural gas production capacity by almost 50%, to 4.6 billion cubic meters.
This transaction, totaling nearly 1 billion euros, also includes the buyback of interests held by Preussag Energie:
- An 11 % interest in the natural gas transmission and marketing company Erdgas Münster which owns more than 2,000 km of transmission pipelines in north-western Germany and has sales of 1.4 billion euros.
- A 50 % stake in the Reitbrook underground storage site near Hamburg, a 33% stake in the Schmidhausen storage site near Munich and full ownership of the Fronhofen storage site near Stuttgart. The Gaz de France share in these storage facilities represents a working gas capacity of almost 300 million cubic meters.
As part of this acquisition, Gaz de France will also take charge of the Lehrte storage site near Hanover.
"This investment strengthens the Group's presence and integration in Germany, the largest gas market in continental Europe. It is part of Gaz de France's growth and integration strategy and contributes to the Group's short term objective of producing 15% of the natural gas it sells", explains Pierre Gadonneix, Chairman and CEO of Gaz de France.