Swedegas was acquired by EQT Infrastructure in 2010 and is the owner of Sweden’s entire gas transmission network consisting of 601 km of pipelines, extending from Dragör in Denmark to Stenungsund in Sweden.
The Company transports approximately 1.2 billion Nm3 of gas annually to distributors and industrial end-users in the southwest region of Sweden. In March 2015, EQT agreed to sell Swedegas to a consortium of two leading European gas transmission companies.
During EQT’s ownership, Swedegas has grown substantially and further improved its position on the Swedish energy market. The Company has, amongst others, secured consolidation of the Swedish gas transmission market, connected new customers to the network and become the Transmission System Operator (“TSO”) with responsibility for balancing of the gas transmission system.
In addition, Swedegas has strengthened its organization in order to improve operational excellence and enable further growth. These efforts have resulted in substantial growth in the number of employees (c. +60%) during EQT’s ownership.
Key events during EQT ownership
- Key acquisition completed - ownership consolidation of the Swedish gas transmission system achieved
- Certification as Transmission System Operator and System Balancing Administrator after approvals by the Swedish Energy Markets Inspectorate as well as the European Commission
- Regulatory stability obtained through implementation of new regulation
- New tariff structure implemented resulting in reduced earnings volatility, in addition to tariff optimization under the new regulatory regime
- Addition of new customers to the gas transmission systems and identification of new potential customers
- The first connection of biogas to the Swedish gas transmission system
- Increased security of supply through amongst others LNG and biogas initiatives
- Recruitment of additional employees to strengthen the organization, e.g. through establishment of business development and communication functions
Swedegas was the subject of an EQT Update in May 2015, concluding the investment and summarizing the 5 years of EQT ownership with insights from the CEO of Swedegas and the responsible EQT investment advisor. Find it here.