27 Jan 2023 19:13

Switzerland's Axpo withdrawing from TAP project, selling stake to other shareholders for 210 mln euros

BAKU. Jan 27 (Interfax) - Swiss energy holding Axpo has reached an agreement to sell its stake in pipeline company Trans Adriatic Pipeline AG, the operator of the Trans Adriatic Pipeline (TAP), a component of the Southern Gas Corridor, to Belgium's Fluxys and Spain's Enagas SA.

"Under the sale and purchase agreement, Belgium's Fluxys will acquire 1% and Spain's Enagas 4% of Axpo's 5% equity stake. Both companies will thus reach 20% ownership of TAP," Axpo said in a statement on its website.

The value of the deal is 210 million euros.

"The transaction is subject to customary conditions, and closing is expected in the second half of 2023," Axpo said.

"Axpo continues to pursue its three-pillar business strategy, focusing on our Swiss business, renewable energies and trading & origination. While the company has decided to transfer its stake in the project, TAP will remain a strategic partner for us, as Axpo Solutions AG will continue to market for the long-term gas volumes secured from the Shah Deniz consortium," Axpo Group CFO Joris Groflin was quoted as saying in the press release.

"In the current international context and considering the historically tight market conditions during the summer of 2022, supply security and diversification across gas supply chains remain key priorities for Switzerland and Europe as a whole. Gas transported via TAP provides a much-needed new energy source for households and businesses alike, also boosting security of supply for Swiss consumers," Groflin said.

Gas trading remains a central international business for Axpo, the company said.