03 September, 2018

First State Investments agrees to acquire Swedish gas transmission system operator Swedegas

The European Diversified Infrastructure Fund II (“EDIF II” or “the Fund”), managed by First State Investments (“First State”), has agreed to acquire Swedish gas transmission system operator, Swedegas from the Spanish and Belgian utilities Enagás and Fluxys. The transaction is the Fund’s second acquisition in the Swedish gas network sector, having acquired the country’s largest gas distribution system operator in April 2018.

Swedegas is the owner and operator of the sole gas transmission network in Sweden. Through a 600km pipeline network, it supplies 33 municipalities, several combined heat and power plants and industrial customers with gas. Swedegas is currently developing a facility in the Port of Gothenburg which will allow vessels to refuel using Liquefied Natural Gas (LNG) and Liquefied Biogas (LBG), providing the marine transport sector with more sustainable options.

Marcus Ayre, Partner, Infrastructure Investments at First State, said, “We have significant experience in the European energy transmission and distribution market and it was natural for us to look for further investments in the Swedish gas network sector. The energy market is one which meets our investment criteria as we seek to create long-term, sustainable value for our investors.”

Swedegas has strong sustainability ambitions and is a member of the Green Gas Initiative. It aims to ensure that 30% of the gas in its network is renewable by 2030, and 100% by 2050.

In 2007, First State signed the Principles of Responsible Investment and has embedded environmental, social and governance values across all of its investment strategies.

Marcus Ayre continued, “We are committed to working closely with the management team at Swedegas to meet its sustainability goals. The availability of well-developed gas networks in Europe and the complementary function of renewable gases and natural gas vis-à-vis other energy forms, make gas and gas infrastructure well positioned to help in the transition to a greener energy environment.”

The closing of the transaction is subject to approval from the Swedish Competition Authority.

EDIF II is the successor fund to EDIF I and pursues an investment strategy of constructing a core/core+ infrastructure portfolio of assets primarily targeting energy, utility and transportation investments across Europe. It follows a series approach to fundraising and in June 2018, successfully completed its second fundraising series, taking EDIF II’s total commitments to €2.1bn, from leading global institutional investors.

For further information please contact:

Cat Stirling, Director,
Strategic Communications, FTI Consulting
020 3727 1486

Saila Horttanainen, Swedegas
Vice President Communications and Sustainability
(questions concerning Swedegas)
+46 70 622 76 06

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