UPDATE: Eni Agrees To Sell Gas Pipeline Stakes To Fluxys

Italian energy giant Eni SpA (E) said late Thursday it has signed an agreement to sell its stakes in two natural gas pipelines to Belgian grid operator Fluxys SA (FLUX.BT).

Eni is selling to Fluxys its stakes in the Transitgas and TENP pipelines, which carry Russian gas into Italy via Switzerland and Germany, respectively.

In the Swiss gas pipeline system, Eni is selling a 46% in Transitgas and 100% of Eni Gas Transport International, both of which own the pipeline and transportation rights for the Swiss section of the gas pipeline linking Belgium and the Netherlands to Italy, Eni said.

In the German gas pipeline, Eni agreed to sell 100% of both Eni Gas Transport Deutschland and Eni Gas Transport, as well as a 49% stake in TENP and a 50% holding in Trans Europa Naturgas Pipeline GmbH, the company added.

TENP and Eni Gas Transport Deutschland own the pipeline and transportation rights for the German section of the gas pipeline.

The sale price for the Transitgas stakes amounts to a total 974.7 million Swiss francs, while Eni will get EUR60 million for the sale of the shares in TENP, according to Eni.

The price will be adjusted at the closing date, the company added.

The sale process is expected to be completed by the end of the year and it's subject to the approval of the European Commission.

Last year, Eni offered to sell its stakes in three international natural gas pipelines, which it valued at a total of around EUR1.5 billion, in a move aimed at ending a European investigation into market abuse.

-By Alessandro Torello and Enza Tedesco, Dow Jones Newswires; enza.tedesco@dowjones.com

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