Snam Led Group Finalists for Total SA's TIGF

A consortium led by Italian group Snam entered into exclusive negotiations for the purchase of the the gas transport and storage business of Total SA.

The consortium, which includes the Government of Singapore Investment Corp and France’s EDF is prepared to pay $3.25 billion for Transport et Infrastructures Gaz France (TIGF) system, the provider of gas transmission and storage services in southwestern France.

Christophe de Margerie, Total’s chief executive, said: “The consortium selected, consisting of industry-leading operators and long-term investors, will support TIGF in its further development while meeting the commitments made to TIGF’s employees and partners.”

TIGF manages a network of about 5,000km of pipeline that carry 13 per cent of the total volume of gas transported in France. It also operates 22 per cent of the country’s gas storage capacity. The company has 500 employees and generated revenues of more than €350m in 2011.

Total announced last year it was planning to sell TIGF as part of a plan to sell off $15bn-$20bn of assets by 2015.