Spain's Naturgy plans energy, infrastructure split
Spanish multinational natural gas and electric utility Naturgy said February 10 it would split into two units, one holding its generating assets, the other its energy distribution and transmission businesses.
The split, called the Gemini Project, is expected to boost Naturgy's role in the energy transition, accelerate its strategic plan and assist its growth into renewable project developments.
The generating business, with 11mn customers and a diversified portfolio of 209 TWh of gas supplies, is targeting 25 GW of installed electricity capacity by 2025, including 14 GW from renewables and 11 GW from conventional sources. The infrastructure business would bring together 155,000 km of electricity networks and 135,000 km of natural gas networks in six countries, together serving 16mn connection points.
It is expected to allow “for broader merger and acquisitions opportunities with a clearer strategic fit” and “optimises leverage and dividends,” the company said in a statement. Pending shareholder approval of the plan in mid-March, the split is expected to be executed this year.