Iberdrola Sells Its Gas Storage Business in Canada to ATCO Group

Source: www.gulfoilandgas.com 12/3/2021, Location: North America

- The transaction is part of the non-strategic asset rotation envisaged in Iberdrola's 2020-2025 Strategic Plan.
- The sale is unconditional and effective upon signature.

Iberdrola has taken another positive step foward in its decarbonization strategy. The company, through its subsidiary Scottish Power Overseas Limited, has closed the sale of Alberta Hub Gas Storage - owned 57% by Iberdrola Canada Energy Services - to the Canadian group ATCO.

Iberdrola Canada Energy Services operates the Alberta Hub Gas Storage natural gas storage facility in the province of Alberta, Canada. The asset has a total storage capacity of approximately 43 Bcf (24 Bcf net according to Iberdrola's shareholding).

With this operation, Iberdrola continues its plan to divest non-strategic assets, in line with its climate action, energy transition and exit from the gas business initiated in 2001.

The divestment is a further step in Iberdrola Group's commitment to emissions reduction, which anticipated the industry's move through a strategy kicked off in 2001:

- At the end of 2001, the company put its stake in Repsol up for sale.

- In 2009, the company closed its regasification business and sold its stakes in the Sagunto and BBG regasification plants.

- In January 2010, Iberdrola sold its 15.68% stake in the Irish company Petroceltic, dedicated to the exploration and production of hydrocarbons.

- In 2011, the company sold the Seneca Lake gas storage facility in the state of New York and 2 associated gas pipelines.

- In 2013, the company sold its 20% stake in Medgaz, the company which owns and operates the gas pipeline linking Algeria to Spain.

- In 2014, a 25% stake in the Bahia Bizkaia Electricidad (BBE) combined cycle plant was sold.

- In 2016 the company sold its 4.9% stake in Iroquois Gas Transmission System in the United States.

- Early 2018 saw the sale of the gas storage and gas trading businesses in the US.

- At the end of 2018, the exit of the thermal generation business in the UK was completed, making Scottish Power the country's first 100% green utility, focusing on renewable generation, networks and customers.

- In 2019, the company sold its portfolio of long-term LNG supply contracts in a first-of-its-kind transaction.

Thus, the company practically closes its gas storage business, as it would only have one residual asset left in the United Kingdom, 4.1-Bcf Hatfield Gas Storage. With the divestment of the gas storage business in Canada, Iberdrola takes another step forward in its commitment to clean energy and decarbonisation of the economy.

INVESTMENTS TO MEET THE CHALLENGES OF THE GREEN ECONOMY

Iberdrola has been leading the energy transition for two decades, acting as a key driving force in the transformation of industries and the green recovery of the economy and employment. To this end, the company has launched a major investment plan of €150 billion over the next decade - €75 billion euros by 2025 -, with which to triple renewable capacity and double network assets and take advantage of the opportunities of the energy revolution facing the world's leading economies.

With 80% emission-free production at the end of nine months 2021, the Iberdrola group has committed to be carbon neutral by 2030 in Europe, where its emissions were just around 50g/kWh at the end of nine months 2021, and to reduce its global CO2 emissions intensity to 50g/kWh (70g/kWh by the end of 2025) and become carbon neutral globally by 2050.


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