The sale of Dong Gas Distribution is part of the political agreement regarding its initial public offering.

Dong Gas Distribution is engaged in transporting gas to about 122,000 customers in Southern Jutland as well as Western and Southern Zealand.

The grid company has generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of DKK360m ($55m) in 2015.

The transaction is subject to approval by the Ministry of Finance, the Ministry of Energy, Utilities and Climate and competition authorities in Denmark.

Upon closing of the transaction in September 2016, the company will transfer 97 employees to

Dong Energy said it will also sign a transitional services agreement with under which services are provided for an agreed period post-closing. owns and operates in advance the overall gas network and will operate distribution networks in Southern Jutland.

In 2014, acquired Dong Energy’s 100% stake in Dong Storage, which owns and operates Stenlille gas storage facility in Denmark, for DKK2.25bn ($344.6m).