OMERS Infrastructure and Enagás Internacional Sell Stake in GNL Quintero to EIG and Fluxys
Posted on 03/28/2022
OMERS Infrastructure signed an agreement with OMERS partner Enagás Internacional, part of Enagás, S.A., to sell their combined 80% interest in GNL Quintero S.A. (GNLQ), to a consortium formed by EIG and Fluxys S.A. Fluxys is a Belgium-based company, mainly acting as a natural gas transmission system operator.
OMERS Infrastructure will be selling 100% of OMERS Infrastructure Chile Holdings I SpA, which owns a 34.6% stake in GNLQ.
Enagás Internacional sold its 45.4% stake in GNL Quintero for 601 million euros.
GNLQ is a terminal located in the Valparaiso Region, that is responsible for the reception, unloading, storage and regasification of liquified natural gas (LNG). GNLQ facilitates the provision of a reliable and consistent source of energy to households, commercial and industrial customers, power plants and other users located in central Chile, including Santiago. Operational since 2009, Quintero is the largest terminal for receiving and unloading LNG in Chile, as well as for its storage and regasification capacities. The terminal benefits from its strategic location in Quintero Bay, supplying a diversified base of customers in central Chile across residential, commercial, industrial, transportation and power generation sectors. The terminal owns 75% of the country´s LNG regasification capacity and in 2021, 67% of the total natural gas imports (both LNG + pipeline imports) arrived in Chile through this strategic asset.
OMERS has been an active investor in GNLQ since 2017.
OMERS Infrastructure will redeploy the proceeds to continue to grow its portfolio in its focus markets and across its five priority investment themes – energy transition, mobility, connectivity, community and natural systems.
The acquisition builds on EIG’s presence in the Chilean market, where the firm owns Cerro Dominador, a groundbreaking solar complex that combines a 100MW photovoltaic (PV) plant with a 110MW concentrated solar power (CSP) plant. The PV plant has been operational since 2017 and the CSP plant was successfully synchronized with Chile’s electricity grid in April 2021. EIG also is a partner in AME S.p.A, a Chile-based project developer and independent power producer. AME co-owns Generadora Metropolitana, the fifth largest electricity generation company in Chile, as well as HIF Global, a leader in the hydrogen and e-fuels sector, with a series of commercial-scale projects in development and expected to reach construction over the next several years.
OMERS Infrastructure was advised by Credit Suisse as financial adviser and Milbank LLP and Carey y Cía. Ltda. as legal advisers.
Citigroup Global Markets Inc. acted as financial advisor to EIG and Fluxys in connection with the transaction. White & Case LLP served as EIG’s legal advisor and Linklaters LLP served as Fluxys’ legal advisor.
Keywords: Empresa Nacional del Gas, Enagas, S.A., EIG Global Energy Partners, Ontario Municipal Employees Retirement System (OMERS).