Eni to exit stake in German gas networks - report

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According to German newspaper Stuttgarter Zeitung on Wednesday, Italian energy company Eni wants to exit from its 50% stake in its German natural gas transmission networks. Eni co-owned the asset with utility company EnBW. The gas networks composed mainly of Terranets BW and Gasversorgung Sueddeutschland (GVS).

Without specifying its sources, the newspaper added that Eni's stake gas networks stake would be purchased by either EnBW or a special consortium of EnBW and its shareholders in the public sector. The paper speculated that the buyout would be in the range of hundred million euros.

Should EnBW decide on purchasing Eni's stake in the gas assets, it would undermine the utility company's efforts to free up capital. After tepid demand, falling prices in power, and the country's abandonment in nuclear power, EnBW has been struggling with its finances.

When asked for comment, EnBW refused to provide one. In August, OEW's chairman disclosed to Reuters that EnBW should not divest its transmission networks as the asset had been profitable to the utility company. OEW, a group of nine local municipalities of Russia, and the German state of Baden-Wuerttemberg owned EnBW.

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