Italgas completes Greek gas DSO acquisition

Italian gas DSO Italgas has reported the completion of its €733 million ($728 million) acquisition of Greece’s Depa Infrastructure S.A.

With the acquisition of Depa Infrastructure, Greece’s leading gas distribution operator, Italgas becomes the major player in that country’s gas distribution market, also marking its return to the international market.

Barbara Morgante, former director general of the Regione Abruzzo, who has been acting as the Greece project manager, has been appointed as the CEO.

Nunzio Ferrulli, Chief Institutional and Regulatory Affairs Officer at Italgas, has been appointed as the chairman.

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“Today we start writing an important page in the history of Italgas. We will put our experience and our technological know-how at the disposal of the country to build an infrastructure of excellence and with it contribute to achieving the coal and lignite phase-out targets set by the government, in line with those of the EU,” commented Italgas CEO, Paolo Gallo.

“In the European scenario, Italy and Greece can aim to become the benchmark for the strategic role of smart, digital and flexible gas networks fostering the energy transition. We are here to make this happen.”

DEPA Infrastructure is a holding company currently with 51% of Thessaloniki-Thessalia Gas Distribution (EDA Thess), 100% of Attiki Natural Gas Distribution (EDA Attikis) and 100% of Public Gas Distribution Networks (DEDA).

Together, the three companies currently manage approximately 7,500km of network and about 600,000 redelivery points, although both of these are expected to grow with the low penetration of gas in Greece.

Dimitris Politis, CEO of Hellenic Republic Asset Development Fund, which with Hellenic Petroleum were the previous owners of DEPA Infrastructure, said the acquisition brings significant benefits for the Greek economy and Greek citizens.

“It represents a clear vote of confidence in Greece’s growth prospects. It is also an important step towards realizing the ambitious goals of our country’s energy transition by reducing greenhouse gas emissions and ensuring that the company will have plentiful access to financing for the expansion of the natural gas distribution networks.”

In its strategic plan 2022-2028, Italgas envisaged a total of €1.8 billion ($1.8 billion) in investments allocated to the Depa Infrastructure acquisition and the execution of development programmes with a particular focus on the digitalisation of networks including smart meters and renewable gases such as biomethane and hydrogen, such as the company also is undertaking in Italy.

The plan also indicated the possibility of further M&As in Greece’s gas and water sectors.