Croatian power utility HEP and leading investor group Energia naturalis entered into 76.5 million Kuna (10 million euros) worth contracts on the purchase and sale of business shares in natural gas trading company PPD.
HEP has thus become the owner of the 702 kilometres long gas distribution network in the Vukovar-Srijem county and has taken over the supply of 10,800 new customers.
These acquisitions have confirmed the position of HEP’s gas division (HEP Plin) as one of the leading gas distributors and suppliers. With these latest acquisitions, the company will supply a total of 93,000 customers, and operate 3,880 kilometres of the gas distribution network located in four neighbouring counties of east Croatia.
“The acquisition of these two companies is a continuation of the HEP Group’s strategy implementation focused on the further development of gas operations and active participation in the consolidation of the Croatian gas market,” said Frane Barbarić, HEP’s President of the Management Board.
“The consolidation of local natural gas distributors is a necessity throughout Croatia in order to ensure a better market position, optimise the maintenance costs of distribution networks as well as the security of natural gas supply,” added Pavao Vujnovac, President of the Management Board of Energia naturalis Group.
HEP Plin’s long-term plans are focused on the construction of the gas network extension and the introduction of new technologies including remote readings and ‘smart’ gas meters, which shall ensure the basis for the future increase of customers, of the volume of distributed gas and the service quality improvement.