The Times: Shell gains £968m from sale of gas stake: “The sale comes amid soaring gas prices which have prompted increases in customers' bills and an inquiry by Ofgem, the UK energy regulator. Ofgem last month urged a European Commission investigation into whether gas companies had withheld supplies to Britain, exacerbating a supply squeeze caused by declining North Sea production.” (ShellNews.net)

By Mike Verdin, Times Online

November 01, 2004 

The Dutch Government has for £1.93 billion bought total control of a pipeline being built to tackle the gas shortages which have sent UK energy prices soaring..

Shell and Esso will gain £968 million each from the disposal of their 25 per cent stakes in the Gasunie gas transport business, the Dutch national gas pipeline operator. The business also controls a joint venture building a pipeline to supply some 770 million cubic feet of gas a day to Britain under a ten-year deal.

The sale comes amid soaring gas prices which have prompted increases in customers' bills and an inquiry by Ofgem, the UK energy regulator. Ofgem last month urged a European Commission investigation into whether gas companies had withheld supplies to Britain, exacerbating a supply squeeze caused by declining North Sea production.

Shell said that the deal would help further a restructuring aimed at streamlining operations and regaining investor confidence after a year in which the Anglo-Dutch oil giant has suffered a series of setbacks.

Michael O'Callaghan, the chief executive of Shell Energy Europe, said: "The envisaged agreement is a further milestone in delivering on our strategy of active portfolio management."

On Friday, Shell revealed that, to improve its corporate governance, it was to ditch a dual structure dating back to the company's formation from Shell Transport & Trading and Royal Dutch in 1907.

Under this morning's deal, Gasunie's retail division will remain as a joint venture, owned 50 per cent by the Dutch government and 25 per cent each by Shell and ExxonMobil.

Shell shares stood 4.75p higher at 433.5p in morning trade.