29 July 2016

Marubeni Corporation to acquire stake in Portuguese gas distribution business

Marubeni Corporation ("Marubeni"), together with Toho Gas Co., Ltd. ("Toho Gas"), have reached an agreement with Galp Energia, SGPS, S.A. ("Galp"), a major Portuguese energy company, to acquire a 22.5% stake of its wholly owned gas distribution company, Galp Gás Natural Distribuição, S.A. ("GGND") ("Transaction"), through a JV set up by Marubeni and Toho Gas in which each will hold a 50% stake.

GGND is the largest gas distribution company in Portugal with approximately 70% market share. GGND distributes gas to 1.05 million households, including the capital, Lisbon. The Transaction marks the largest equity participation by a Japanese company in the European gas distribution market, and the first in the Portuguese gas distribution sector.

Marubeni owns and operates a gas pipeline and gas distribution business in Australia, and is looking to explore further growth in the European market following this Transaction. Marubeni first entered the Portuguese power generation market in 2013 and has power generation assets with a total capacity of 3,000MW, accounting for approximately 20% of total domestic power production. In 2014, Marubeni expanded its presence by investing in the country's largest water company, AGS - Administração e Gestão de Sistemas de Salubridade, providing water and sewerage services to approximately 10% of the domestic population. With this Transaction, Marubeni is expanding its integrated participation in the Portuguese infrastructure sector.

Through its participation in GGND, Marubeni aims to contribute to the development of the infrastructure sector in Portugal, utilising knowledge acquired from its business operations in Portugal and other countries, and to expand its gas distribution activities in Europe.

Galp Energia, SGPS, S.A.

Location : Lisbon, Portugal
Business : Oil and Gas Exploration & Production, Refining and Marketing, Gas and Power Business
Area of Business : Portugal, Brazil, Angola and Mozambique

Galp Gás Natural Distribuição, S.A.

Location : Lisbon, Portugal
Business : Gas distribution business
egulated Assets : €1,148Mil
Connections : 1.05 million households
Length of Pipeline : 12,500 km
Volume Distributed : 1.4bcm p.a.

Distribution Area of GGND

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