At least three bidders including Italy's Snam and Australia's Macquarie are expected to place binding bids later this week for a 49% stake in pipeline company Gas Connect Austria, sources close to the matter said.
Gas grid company Snam is bidding in a consortium with Germany's Allianz, while Macquarie and Czech energy group EPH are expected to bid on their own, the sources said on July 26.
Final bids, expected to be in the region of 500 million euros (US$549 million) to 600 million euros, are due by July 29, a banker involved in the process said.
Two other sources said bids were expected before the end of July. Snam, Macquarie, Allianz and EPH declined to comment.
Austrian energy group OMV, which is 31.5% owned by the state, is selling a 49% stake in Gas Connect Austria to raise cash to fund investments as oil prices fall.
A spokesman for OMV declined to comment on the specifics of the bid process, saying only: "We want a signature by the end of the year."
With ultralow interest rates, infrastructure investments generating steady regulated returns are attracting increasing interest from financial players looking for safe yields.
Gas pipelines are also drawing interest from industrial players as Europe seeks to integrate its patchwork of gas grids.
Snam, Europe's biggest gas pipeline operator, is looking to play a leading role in the consolidation process designed to boost security of supply.
The company, which has a strategic alliance with Belgium's Fluxys, already controls French grid TIGF and Austrian pipeline TAG and recently bought a 20% stake in the Trans Adriatic Pipeline that will bring Azeri gas into Europe. (US$1 = 0.9106 euros)
Recommended Reading
CEO: Magnolia Hunting Giddings Bolt-ons that ‘Pack a Punch’ in ‘24
2024-02-16 - Magnolia Oil & Gas plans to boost production volumes in the single digits this year, with the majority of the growth coming from the Giddings Field.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
Chesapeake Slashing Drilling Activity, Output Amid Low NatGas Prices
2024-02-20 - With natural gas markets still oversupplied and commodity prices low, gas producer Chesapeake Energy plans to start cutting rigs and frac crews in March.