Italgas, an Italian gas distribution company, announces that it has completed the acquisition of the Greek gas distribution network DEPA Infrastructure. The company has concluded this agreement with the Greek privatization agency and Hellenic Petroleum. In particular, Italgas plans to expand and modernize the Greek gas network DEPA Infrastructure through digitalization.
Italgas has thus acquired DEPA Infrastructure from the privatization agency and Hellenic Petroleum for the sum of 733 million euros. In addition, DEPA Infrastructure holds stakes in three major gas distribution operators in Greece. In addition, these three operators manage a gas network of 7,500 km.
Italgas wants to modernize its gas networks
For its part, Italgas currently manages a pipeline network of 74,000 km. The contract for the purchase of the DEPA Infrastructure network was concluded in the previous year. Italgas has announced its intention to modernize the Greek network and update the Italian gas network. To do this, the Italian group says it is ready to invest 8.6 billion euros until 2028.
With this modernization, the company also wants to comply with the EU’s climate guidelines. Paolo Gallo, CEO of Italgas, said:
“We will put our experience and technological know-how at the country’s disposal to build an infrastructure of excellence and thus contribute to achieving the coal and lignite phase-out targets set by the government, in line with those of the EU.”
This modernization would include digitization, as part of the EU’s goal to achieve Net Zero by 2030. In fact, Italgas wants to digitize its entire network in order to facilitate the use of more renewable hydrogen and synthetic fuels.
On the subject of digitization, Paolo Gallo adds:
“The gas infrastructure, to be able to do that, […], it has to be smart, it has to be digital and it has to be flexible.”
Expanding the Greek gas network
In addition to this modernization, Italgas wants to expand the Greek gas network. Currently, the network deserts about 600,000 people and the Italian company would like to reach 1 million people.
Similarly, according to media reports, the Greek group Copelouzos is in talks with Italgas to acquire a 10% to 20% stake in the network.
Mr. Gallo told reporters about the agreement:
“That’s more or less the size we’re talking about […]. Finalizing a deal could take weeks or months.”
Since 2011, Athens has raised 7.6 billion euros by selling public assets to mitigate its debt. However, the pandemic has weighed heavily on the 2020/2021 privatization revenues, which brought in 680 million euros. For 2022, Greece hopes that the amount of revenue will reach 2.2 billion euros.
