Allianz to invest in Portuguese gas distributor Galp Gás Natural Distribuição
Galp Gás Natural Distribuição is Portugal´s largest natural gas distribution network / Network with 13,000 km is serving c.1.1mn households.
Today, Allianz Capital Partners on behalf of Allianz insurance companies ("Allianz") and the Allianz European Infrastructure Fund has signed an agreement to purchase from Galp Energía S.A. ("Galp") a 75% stake in Galp Gás Natural Distribuição ("GGND").
GGND is a regulated distribution network with a length of over 13,000 km that is serving c.1.1 million households, including the country´s capital of Lisbon. GGND´s network is one of the most modern distribution networks in Europe.
Almost 95% of GGND´s network consists of low-pressure polyethylene ("PE") pipes, which can be utilized for distribution of hydrogen, synthetic natural gas or biomethane. Furthermore, these PE pipes provide for an extended service life as well as lower maintenance costs and leakage rates.
Christian Fingerle, Chief Investment Officer at ACP says: "We are pleased to be investing in GGND, which is our first direct infrastructure investment in Portugal. We look forward to supporting jointly with GGND and our partners this critical infrastructure which contributes to the decarbonization plan of the Portuguese economy and can become an important enabler for the energy transition towards renewable gases while delivering long-term, risk adjusted returns for our insurance customers and investors."
The transaction is subject to regulatory approvals and is expected to close in Q1 2021.