WINGAS Decouples Supply, Transport of Gas

European energy distributor WINGAS has moved towards aligning itself with incoming EU policies in announcing that it will be transfering its pipeline system to a subsidiary.

WINGAS will transfer ownership of over 2,100 kilometers of pipeline linking the major import points for Russian natural gas and gas from the North Sea with the end customers in Europe. The pipeline network currently in place includes nine compressor stations across Germany and has a capacity of over 400 megawatts.

"In transferring ownership of the network from the parent company to WINGAS TRANSPORT, the WINGAS Group is implementing the requirements of the EU's third energy market liberalisation package early," the company said in a statement.

The EU is implementing this directive to boost competition in the German gas market, which includes the separation of ownership of supply of gas and transport of gas.  The new legislation will be effective as of March 2012.

Earlier, WINGAS announced that Fluxys, the operator of the natural gas transmission and storage infrastructure in Belgium, has entered into a term sheet to acquire from WINGAS, 19% stake in the North European Gas Pipeline NEL.

WINGAS GmbH & Co. KG is a joint venture of BASF SE/Wintershall Holding GmbH and Russia's OAO Gazprom.

Source: WINGAS