Edison, Snam finalize gas storage deal valued nearly €630M

EDF's Italian subsidiary, Edison, will sell its gas storage unit to gas grid operator Snam in a deal valued at approximately €560 million ($608.05 million), according to an announcement from the two companies.

The agreement includes provisions for price adjustments, potentially allowing Edison to receive up to €630 million, contingent on future developments, including the outcome of arbitration concerning one of the assets, News.Az reports.

Edison had previously sought market interest for three gas storage sites in Italy, all owned through its unit, Edison Stoccaggio, attracting interest from both Italian and international investors.

"The transaction supports Edison's strategic plan through 2030, which emphasizes renewable energy development and ensuring Italy’s gas supply security, including through the advancement of green gas," said Edison Chief Executive Nicola Monti.

Snam, which is controlled by the Italian government, already operates the bulk of the country's gas storage system including strategic reserves and hopes to get synergies out of the integration of Edison's sites.

Negotiations started in February and once the deal is finalized, Snam will reach a total capacity of about 18 billion cubic metres (bcm), including 4.5 bcm of strategic reserves, Snam said in a separate release.

News.Az