Iberdrola sells Maine Natural Gas for nearly $90 million to the US energy company Unitil

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

MNG's assets include 231 miles of pipelines and serve about 6,000 customers. This transaction reinforces Iberdrola's strategy focused on the sale of non-strategic assets, portfolio optimisation with value creation, capital discipline, and structure simplification of its structure. MNG is a small gas business, non essential for Iberdrola, so it was outside the company's strategic scope. With this divestment, the company focuses its investment on the U.S. electricity grids, which account for 80% of the company's business in the country.

The transaction is pending the usual authorization processes in this type of transaction but is expected to close by the end of the year.

Alliances for Growth

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