Japanese group Marubeni and gas utility Toho Gas have reached an agreement with Portuguese energy group Galp Energia to jointly acquire 22.5% in Galp Energia's fully-owned gas distribution company Galp Gás Natural Distribuição (GGND). Marubeni and Toho Gas will each own 50% of the joint venture holding 22.5%.
GGND is the largest gas distribution company in Portugal with approximately 70% market share. GGND distributes gas to 1.05 million households, including the capital of Lisbon. The company operates 12,500 km of pipelines (regulated assets of €1,148m) and distributes around 1.4 bcm/year in Portugal.
This acquisition will strengthen Marubeni gas network operations. The group owns and operates a gas pipeline and gas distribution business in Australia, and is looking to explore further growth in the European market following this transaction. Marubeni first entered the Portuguese power generation market in 2013 and has stakes in power generation assets (coal-fired, gas-fired and wind) with a total capacity of 3,000 MW, accounting for approximately 20% of total domestic power production. In 2014, Marubeni expanded its presence by investing in the country’s largest water company, AGS - Administração e Gestão de Sistemas de Salubridade, providing water and sewerage services to approximately 10% of the domestic population.