Austria-based oil and gas company OMV has agreed to sell its 51% stake in Gas Connect Austria to VERBUND, an Austrian electricity company, for EUR 271 million.

In addition to the consideration, VERBUND will assume the outstanding liabilities of Gas Connect Austria to OMV on the closing date in 2021. As per the terms of the deal, the total cash consideration paid by VERBUND to the Austrian oil and gas company will be EUR 436.9 million, which will be subject to the amount of liabilities as per closing.

Gas Connect Austria is engaged in operating and constructing natural gas high-pressure pipelines in Austria.

The midstream company owns a nearly 900km long natural gas high-pressure pipeline grid in Austria with a sold transport capacity of 143 billion cubic meters per year.

The other owner of Gas Connect Austria is Gasinfrastruktur (49%), which in turn is a 60:40 joint venture between Allianz Group and Snam.

Michael Strugl – Deputy Chairman of the Management Board of VERBUND said: “VERBUND operates the Austrian power transmission grid and is experienced in operating regulated infrastructure. As a bridging technology, gas will continue to play a key role on the path to a renewable energy system.

“The importance of the gas network will grow significantly in future as it will increasingly be used to transport green gases such as green hydrogen.

“In the long term, we see a global hydrogen economy, one in which large quantities of energy need to be transported internationally. This makes the purchase of Gas Connect Austria a key strategic step for VERBUND”.

The deal will help OMV cut down its debt by more than EUR 570 million.

Rainer Seele – Chairman of the Executive Board and CEO of OMV said: “We are delighted to have reached an agreement with VERBUND. This marks the first major step in our previously announced 2-billion-euro divestment program and the sale will have a debt-relief impact for OMV of more than 570 million euros.”

The deal, which is subject to receipt of regulatory approval, is likely to be closed in the first half of next year.

  Austria, Gas Connect Austria, Michael Strugl, OMV, Rainer Seele, VERBUND