Clifford Chance is advising US energy provider Dynegy in its £421m acquisition of BG Storage. This is the first time Clifford Chance has advised Dynegy on a major UK deal. The relationship stems back a couple of years in Europe, with the firm advising on major deals in the Netherlands, Italy, Spain and Germany. The BG Storage deal consolidates the relationship.
Lead partner on the deal Bleddyn Phillips is an oil and gas specialist. He moved to Clifford Chance from TotalFina in 1996, and before that worked at BP in the US. He says that Clifford Chance's involvement in advising Dynegy underscores the firm's capability regarding complicated acquisitions in the energy sector.
The acquisition is the first sale in Western Europe of a regulated, unbundled storage business by a former dominant player and a massive overhaul of Dynegy's European energy capability. Dynegy will acquire two key gas storage facilities, used by half of all UK gas shippers and the Easington natural gas-processing terminal. Dynegy does not anticipate regulatory concerns as gas storage has become a more flexible market in the last few years.