© Reuters. Snam’s logo is seen outside its headquarters in Rome, Italy June 4, 2020. REUTERS/Guglielmo Mangiapane
MILAN (Reuters) – Snam (BIT:) has selected Rothschild & Co. and Societe Generale as advisers for the potential purchase of Edison’s gas storage assets.
Two sources familiar with the situation said so.
EDF’s Italian subsidiary recently said it was evaluating several options related to storage assets, adding that its three sites would be worth well in excess of €500m.
Last month, Edison chose Lazard and Intesa Sanpaolo (BIT:) as consultants for the future of the storage business, according to the sources.
Snam, which already manages most of the gas storage facilities in Italy, has recently expressed its interest in Edison’s facilities, which are geographically close to some of its current deposits.
The energy crisis triggered by Russia’s invasion of Ukraine demonstrated last year how large gas storage facilities allow a country to build up an energy reserve to cope with potential consumption peaks during the winter.
Edison’s gas storage business recorded a ‘core’ profit of approximately 50 million euros last year. According to sources, the business has a recognized invested capital (RAB, Regulated Asset Base) of around 500 million euro.
Other potential investors could be some infrastructure funds and industrial players, according to the sources.
(Translated by Chiara Scarciglia, editing by Gianluca Semeraro)