trending Market Intelligence /marketintelligence/en/news-insights/trending/dEdJ1_0KQbqj3qhqQXkwnA2 content esgSubNav
In This List

Report: Italy's Snam to buy 33% stake in Energy Transfer's Rover pipeline

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Report: Italy's Snam to buy 33% stake in Energy Transfer's Rover pipeline

The Italian natural gas pipeline operator Snam SpA is looking to buy a stake in Energy Transfer LP's 3.25-Bcf/d Rover natural gas pipeline as it seeks to expand its footprint outside of Europe, Reuters reported Sept. 7, citing four unnamed sources.

Snam is carrying out due diligence to acquire a 33% stake from Energy Transfer, one of the sources told Reuters. The auction process for Energy Transfer's stake is at an "advanced stage," with three other bidders expressing interest, the report said.

The Milan-based company is reportedly working with JPMorgan on the potential transaction. Snam is expected to submit a joint bid with a number of financial investors, Reuters reported. Snam is also looking into possibly acquiring Energy & Minerals Group and Blackstone Energy Partners' stakes in the pipeline.

According to previous reports, Energy Transfer is considering a sale of a 33% stake in Rover, which could be worth as much as $2.5 billion. The sale could be either a sign that the midstream heavyweight is tightening its belt or a bid to pour more cash into the booming crude exports business, analysts had said.

The pipeline carries gas from the Appalachian Shale to Ohio and Michigan markets and into the Union Gas Ltd. Dawn storage hub in Ontario, Canada.

Snam is Europe's largest gas pipeline operator and is controlled by state lender Cassa Depositi e Prestiti SpA.