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Spanish and Belgian utilities Enagas and Fluxys have agreed to jointly sell their stake in LNG bunker terminal developer Swedegas to FS Gas Transport AB - a wholly-owned subsidiary of The European Diversified Infrastructure Fund II (EDIF II), which is managed by First State Investments - for SEK 1,024m ($112m) each.

Swedegas - which was acquired by Enagas and Fluxys in March 2015, with a 50 percent share each - is currently developing a facility in the Port of Gothenburg that will enable ships to refuel using liquefied natural gas (LNG) and liquefied biogas (LBG).

Swedegas is also the owner and operator of the sole gas transmission network in Sweden. Through a 600-kilometre pipeline network, it supplies 33 municipalities, several combined heat and power plants and industrial customers with gas.

Additionally, Swedegas is a member of the Green Gas Initiative. It aims to ensure that 30 percent of the gas in its network is renewable by 2030, and 100 percent by 2050.

The Swedegas transaction is EDIF II's second acquisition in the Swedish gas network sector, having acquired the country's largest gas distribution system operator in April 2018.

Marcus Ayre, Partner, Infrastructure Investments at First State, said: "We have significant experience in the European energy transmission and distribution market and it was natural for us to look for further investments in the Swedish gas network sector. The energy market is one which meets our investment criteria as we seek to create long-term, sustainable value for our investors.

"We are committed to working closely with the management team at Swedegas to meet its sustainability goals. The availability of well-developed gas networks in Europe and the complementary function of renewable gases and natural gas vis-a-vis other energy forms, make gas and gas infrastructure well positioned to help in the transition to a greener energy environment."

Commenting on the deal, Enagas said: "The transaction fits with the strategy announced by Enagas, which contemplates the possibility of rotation of some assets outside of Spain to undertake potential new investments."

The closing of the transaction is subject to approval from the Swedish Competition Authority.