Global Infrastructure Partners, Fluxys In JV For Transitgas

Global Infrastructure Partners and Belgian natural gas transport company Fluxys SA (FLUX.BT) Thursday announced a joint venture under which GIP will buy from Fluxys a 44.9% equity interest in Fluxys Switzerland.

The deal gives GIP access to FluxSwiss's 46% equity interest in Transitgas AG, a gas pipeline that runs from north to south Europe crossing central Switzerland and connecting gas markets in Germany and France to Italy. The pipeline is being made bi-directional so the flow can also go south to north.

As transmission system operator, FluxSwiss also has the right to market 90% of the transmission capacity in the pipeline system.

"We welcome the opportunity to partner with Fluxys to enhance the security of gas supply and interconnect the key trading hubs in western Europe," said Adebayo Ogunlesi, managing partner of GIP.

"FluxSwiss represents a uniquely strategic infrastructure asset in a rapidly evolving European natural gas market that will benefit from the combined financial, operational and energy industry expertise of our partnership."

Citigroup (C) acted as GIP's financial adviser in connection with this transaction.

-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com

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