Osaka Gas has entered into an agreement with Endesa, a major power company in Spain, for its acquisition of the 20% interest in Sagunto LNG receiving terminal owned by Endesa Generacion, a wholly owned subsidiary of Endesa.
The decision for Osaka Gas’ participation in the Spanish LNG terminal business has been made as part of the company’s efforts in broadening its energy business overseas along the value chain of natural gas.
Sagunto terminal, located in Sagunto Port on the east of the Province of Valencia, has the total LNG regasification capacity of 6.4 million tons per annum. When the current expansion work is completed, its capacity will be increased to 7.6 million tons.
With the annual consumption of 20 million tons of LNG, Spain is the world’s third largest and the Europe’s largest importer of LNG. The regulatory regime in the country guarantees LNG terminal owners’ returns on their business, ensuring companies stable revenues over the long term.
The transaction on the basis of the agreement will be completed upon fulfilment of all the conditions precedent. The acquisition of the interest will be made through Osaka Gas UK, a wholly owned subsidiary of Osaka Gas.
Overview of Sagunto LNG terminal
||in the city of Sagunto in Valencia Province
|LNG regasification capacity:
||6.4 million tons/year (7.6 million tons upon completion of expansion work)
||total 450,000m3 (3 tanks each with 150,000m3, 4th tank under construction) Start of operation: April 2006
Endesa S.A. is a major electric power utility in Spain established in 1944. It is headquartered in Madrid, Spain.
Planta de Regasificacion de Sagunto, S.A.
Owned by Endesa(20%) and other partners, responsible for operation of the Sagunto terminal. It was established in 2003.
Osaka Gas UK, Ltd.
Headquartered in London, UK, it is a wholly owned subsidiary of Osaka Gas.
Osaka Gas Co., Ltd.
Osaka Gas, established in 1897, is one of the largest natural gas suppliers and a major energy services company in Japan headquartered in Osaka with the customer base of 6.9 million mainly in the Japan's Kansai region. In addition to gas distribution and power generation business in Japan, the company is active in overseas energy markets both in upstream and downstream sectors having its assets in Australia, Oman, Indonesia, U.S., Spain and Norway. During the past year, the company purchased a total of about 6.8 million tons of LNG in the year ending March 2010.