UPDATE 1-Gas Natural sells 1 power plant, option to buy other

* Sells 400 MW for 200 mln euro to Switzerland’s Alpiq

* Alpiq has use of further 400 MW for 2 years, option to buy

* Alpiq may pay 195 million euros for second plant
(Updates with background, quote, details)

MADRID, July 12 (BestGrowthStock) – Spanish utility Gas Natural
(GAS.MC: ) is selling one combined-cycle gas power plant and an
option to buy another despite a glut of gas generation
infrastructure in Spain.

The sale of both power plants would take Gas Natural further
towards meeting an order from Spain’s competition authority to
sell 2,000 megawatts of gas-fired power generation.

“This divestment adds to those already made by Gas Natural
Fenosa to comply with the obligations with the National
competition body,” Gas Natural said in a statement on Monday.

Gas Natural was obliged to sell 600,000 gas supply points in
Spain and the power plants as a condition for it acquiring power
utility Union Fenosa last year.

An agreement to sell one power plant with an installed
capacity of 400 MW for 200 million euros has already been signed
with Swiss power group Alpiq (ALPH.S: ), which will also have
exclusive rights to use another 400 MW plant for two years
before they decide to buy it for 195 million euros.

“It’s the best they can get given the current circumstances,
less than what they could have got a couple of years ago, but in
line with what the company themselves valued the plants,”
Ibersecurities analyst Nicolas Fernandez said.

Spain’s economic woes have led to a drop in gas and
electricity demand from which the country is yet to fully
recover, leading to an oversupply in electricity generation
infrastructure in the country.
(Reporting by JonathanGleave, Editing by David Cowell)

UPDATE 1-Gas Natural sells 1 power plant, option to buy other