Allianz turns its attention to gas

Allianz’s strategy of
investing in alternate energy and energy-related infrastructure has
received another boost. Silex Gas Norway, a wholly-owned unit of
Allianz, has agreed to purchase a 6.4% stake in Norway’s gas
transportation network Gassled from French oil company Total for a
consideration of NOK4.64bn ($850m).

Silex Gas Norway’s deal with
Total followed shortly after Norwegian company Statoil’s sale of a
24.1% stake in Gassled to Solveig Gas Norway (SGN) for
NOK17.35bn.

Allianz’s wholly-owned unit
Allianz Capital Partners has a 30% stake in SGN together with
Canada Pension Plan Investment Board (45%) and a unit of the Abu
Dhabi Investment Authority (25%).

Gassled transports Norwegian
gas from production sites by pipeline to consumers in the UK and
continental Europe. In 2010 the Gassled grid conveyed around 100bn
cubic metres of gas, roughly a sixth of total European Union
consumption.

“Infrastructure provides
interesting investment opportunities,” commented Paul Achleitner,
an Allianz SE board member.

“It protects against
inflationary pressure and yields attractive long-term returns for
customers and shareholders. In addition, infrastructure investments
correlate less to equity markets, thereby stabilising our
investment income.”

In December 2010 Allianz
announced that Allianz Capital Partners was to focus on energy
infrastructure investments.

Allianz has since 2005 also
pursued an aggressive expansion strategy in alternate
energy.

Through its unit Allianz Specialised Investments it has
invested more than more than €1bn in some 30 wind farms and solar
parks.

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