Snam a Milan based company controlled by state lender Cassa Depositi e Prestiti is carrying out due diligence to buy a 33% stake sold by Energy Transfer LP in its Rover pipeline. The shift in the Energy sector has caused a lot of energy conglomerates to expand their field of operation.
With the United States seeking more and more energy alternatives, deal with Snam can benefit its energy sector. The 713-mile Rover pipeline can carry 3.25 billion cubic feet of gas daily from the Marcellus and Utica shale plays in Appalachia. It is backed by Energy Transfer with a 33% stake and two private equity firms – Energy & Minerals Group (EMG) and Blackstone Group – who have the remaining 67%. Snam is supposedly working closely with JPMorgan on this deal. Snam and JPMorgan both have denied commenting anything on the matter and the other end of the spectrum Energy Transfer was not available to comment on the situation. The Rover pipeline moves the natural gas from Ohio, West Virginia and Pennsylvania to other parts of the U.S. Midwest and up into Michigan where it can also be piped into Canada. This fact makes it crucial for Snam to acquire this asset and make its global presence noted. The United States, however, benefits through this deal as an experienced energy player comes to their team and also the investments it brings with it can help the energy market to have a boost in Foreign investments in the energy sector.
The United States is working very closely with private as well as the public sector to bring about the energy reforms, which many European countries have already done and the United States doesn’t want to be left out with no sustainable energy options.