Enagas cancels acquisition of 20% stake in BBL pipeline

Enagas liquefied natural gas (LNG) terminal at Zona Franca, in Barcelona
People work at Enagas liquefied natural gas (LNG) terminal at Zona Franca in Barcelona, Spain, March 29, 2022. REUTERS/Albert Gea/File Photo

Feb 16 (Reuters) - Spanish grid operator Enagas (ENAG.MC) has canceled the acquisition of a 20% stake in the BBL gas pipeline from German power utility Uniper (UN01.DE), it told market regulator CNMV.

"The company informs that the closing of the transaction will not take place as the current shareholders of BBL have exercised their right of first refusal," Enagas said in a statement released on Wednesday.

The price of the transaction, which was announced on January 16, was 75 million euros ($80 million).

BBL operates a 235-kilometre pipeline between Netherlands and Britain with an hourly capacity of 20,600,000 kilowatt hours.

Dutch grid operator Gasunie owns a 60% stake while Belgium's Fluxys (FLUX.BR) and Uniper each hold 20%.

The sale of the stake in BBL is part of a package of remedies required by the European Commission in exchange for approving Germany's bailout and nationalisation of Uniper agreed late last year.

($1 = 0.9347 euros)

Reporting by Matteo Allievi; editing by Inti Landauro and Jason Neely

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