German gas pipeline operator Thyssengas put up for sale - sources

By Vera Eckert and Arno Schuetze

FRANKFURT, June 10 (Reuters) - German gas pipeline operator ThyssenGas has been put up for sale by its owners in a deal that could value the group at 1-1.2 billion euros ($1.2-1.5 billion) including debt, three people close to the matter said on Thursday.

Dutch infrastructure fund DIF and French utility EDF's investment arm EDF Invest EDF.PA, which bought the company in 2016, are working with Royal Bank of Canada (RBC) RY.TO on the divestiture and have already sent out first information packages, the sources said.

First-round bids are expected in late July, they added.

ThyssenGas, DIF and RBC declined to comment, while EDF Invest was not immediately available to comment.

Thyssengas, a former unit of German utility RWE RWEG.DE, was bought by its current owners from Australian infrastructure investor Macquarie MQG.AX for 700 million euros in 2016.

The company transports around 10 billion cubic metres of gas a year in a 4,200-km regulated asset grid. It participates in the German virtual NCG gas trading hub and has links to Norwegian and Dutch gas production.

One of the reasons that DIF and EDF Invest decided to put the company up for sale is because the fate of natural gas infrastructure is uncertain in Germany, with fossil fuels being phased out under tougher climate legislation, two separate people familiar with the matter said.

Germany's energy regulator is reviewing permitted returns on capital for gas and power grids and could curb potential income for gas from 2023 to protect consumers. Pipeline transport costs are recouped through fees levied on end-customer gas prices.

DIF and EDF are expected to market Thyssengas to peers as well as to infrastructure investors and pension funds who seek stable returns in the current low-interest rate environment, according to the sources.

Thyssengas is coming to market at roughly the same time that Macquarie is preparing a sale of at least its 24% stake in rival pipeline operator Open Grid Europe (OGE) in a deal that could be worth 6 billion euros. nL8N2LM3WU

Earlier this year, insurance firm Versicherungskammer Bayern bought Ferngas, a peer of ThyssenGas, from First Sentier Investors in a 720-million-euro deal. That auction attracted interest from groups including rival gas pipeline company Snam SRG.MI, Swiss Life, Macquarie, Dalmore Capital and MM Capital. nL8N2LT5RK

($1 = 0.8218 euros)

(Reporting by Vera Eckert and Arno Schuetze; Editing by Pravin Char)

((vera.eckert@thomsonreuters.com; +49 30 2201 33654; @EckertVera;))