Iberdrola Sells Maine Natural Gas for Nearly $90 M to the US
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Iberdrola Sells Maine Natural Gas for Nearly $90 M to the US Energy Company Unitil

This transaction reinforces Iberdrola's strategy focused on the sale of non-strategic assets, portfolio optimization with value creation, and capital discipline.

Iberdrola has sold 100% of the US-based company Maine Natural Gas (MNG) to Unitil, a public energy holding company with operations in Maine, New Hampshire, and Massachusetts. The transaction is valued at approximately $90 million (subject to closing adjustments).

MNG's assets include 231 miles of natural gas pipelines and serve approximately 6,000 customers. This transaction reinforces Iberdrola's strategy focused on the sale of non-core assets, portfolio optimization with value creation, capital discipline, and structure simplification. MNG is a small, non-core gas business for Iberdrola, and therefore fell outside the company's strategic scope. With this divestment, the company is focusing its investment on US electricity grids, which represent 80% of the company's business in the country.

The transaction is pending the usual authorization processes for this type of transaction, but is expected to close by the end of the year.
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In recent years, the company has pursued a strategy of alliances and divestments to accelerate its growth and drive the electrification of the economy while maintaining its financial strength. In addition to the agreement with Kansai a few weeks ago to accelerate electrification in different countries, the company chaired by Ignacio Galán has completed the following transactions in recent months:

  • It completed the sale of the Baixo Iguaçu hydroelectric plant.
  • It allowed Kansai to participate in the German Windanker offshore wind project valued at €1.28 billion.
  • It acquired the British distributor ENW for €5 billion.
  • It completed the merger with Avangrid, after acquiring the 18.4% stake it did not control to strengthen its electricity grid business in the US.
  • It sold more than 8,400 MW of gas-fired combined cycle plants in Mexico in February 2024 for $6.2 billion.
  • In December 2023, Iberdrola closed a strategic agreement with Masdar to co-invest up to €15 billion in offshore wind and green hydrogen in Germany, the United Kingdom, and the United States.
  • In September 2023, the company signed a €430 million partnership with GIC to expand transmission networks in Brazil.
  • In March 2023, Iberdrola and BP launched a joint venture to deploy 11,700 fast-charging points in Spain and Portugal and have formed a 50/50 joint venture to develop a 25 MW green hydrogen project, the largest plant in Spain.
  • In January 2023, it signed a partnership with Norges Bank to co-invest in renewables, which, after expansion, will reach 2,500 MW.
  • Iberdrola and MAPFRE have continued to advance their strategic alliance by adding 150 new MW through a joint venture, which already has 450 MW.
  • In addition, Iberdrola signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and strengthen its offshore wind portfolio

 


Publishdate:
Apr 1, 2025