Dunkirk LNG terminal to become part of the Fluxys group
Fluxys with consortium partners AXA Investment Managers – Real Assets, acting on behalf of its clients, and Crédit Agricole Assurances have agreed to jointly acquire from EDF and Total a 35.76% stake in Dunkerque LNG, owner of the liquefied natural gas (LNG) terminal in Dunkirk. Through the transaction the Dunkirk LNG terminal is to become part of the Fluxys group.
EDF and Total currently between them own 75% of the Dunkirk LNG terminal while Fluxys is 25% partner. Besides agreeing to sell a 35.76% stake in the facility to Fluxys and its consortium partners, EDF and Total also agreed to sell the remaining 39.24% stake to a consortium of Korean investors led by IMP Group.
Upon completion of the transaction Fluxys and its consortium partners will have a 60.76% stake in the facility. With Fluxys already holding 25% in the facility, the company through the consortium will have ~ 30.39% in the capital of the terminal while AXA Investment Managers – Real Assets, on behalf of its clients, and Crédit Agricole Assurances each will hold ~15.19%. Closing of the acquisition process is expected in the autumn. Fluxys’ share in Gaz-Opale, the company operating the Dunkirk LNG terminal, stays unchanged at 49%, the remaining 51% being held by Dunkerque LNG.
Seamless strategic fit
With gas transmission, gas storage and LNG terminalling being the three pillars of Fluxys’ industrial activity as gas infrastructure group, the acquisition fits in seamlessly with the company’s core business and its growth strategy. The transaction strengthens Fluxys’ position in the European LNG infrastructure business and the Dunkirk LNG terminal also holds sound prospects for further growth by developing its small-scale LNG potential, marketing the capacities still available and making the commercial offering evolve with market needs.
Pascal De Buck, managing director and CEO of Fluxys: “Having Fluxys as core shareholder is a key asset for the Dunkirk LNG terminal. We have extensive first-hand experience with the facility as we have been partner from the very onset and we are committed to move its business forward while ensuring a top-notch operational record with clients and high safety and environmental standards. The Dunkirk LNG terminal will also benefit from the LNG expertise within the Fluxys group and especially at the Zeebrugge LNG terminal. Besides our strong industrial expertise we bring with our consortium partners a long-term investment outlook and financial strength.”
Dunkirk LNG terminal: one of Continental Europe’s largest LNG terminals
Commissioned in January 2017, the Dunkirk LNG terminal is one of Continental Europe’s largest LNG terminals. With an annual regasification capacity of 13 billion m³ of natural gas, the terminal can meet 20% of France and Belgium’s gas demand. Through the direct pipeline connection between the terminal and the Belgian network, the terminal provides its clients with easy and flexible access to the UK, Dutch and German markets.
The Dunkirk LNG terminal’s business is underpinned by long-term earnings with about 75% of the terminal’s capacity contracted with EDF and Total under 20-year contracts until 2036. The remaining c. 25% of terminal capacity is available for marketing to serve both the Northwest European market as declining production requires additional supply and the growing demand for transshipment capacity.