Energy company Flogas Ireland is to buy Naturgy Ireland from its Spanish parent company, Naturgy Energy Group SA.

Naturgy Ireland supplies renewable electricity, natural gas, biogas and energy services to large energy users in Ireland, Northern Ireland and the UK.

Its customers include food and beverage producers, major retailers, manufacturing and transport businesses.

Naturgy Ireland has about a 16.8% market share of the large industrial and commercial natural gas market here.

It also supplies biomethane, renewable electricity and compressed natural gas (CNG).

Flogas, a subsidiary of DCC, sells electricity, natural gas and LPG across the island of Ireland and supplies over 175,000 residential and mainly SME business customers.

It said the deal for Naturgy Ireland will expand its reach into the large Irish electricity and gas markets, where it does not compete at present, and represents an important step in its strategy to expand its energy solutions.

Paul Kenny, general manager of Flogas Energy, said today's deal for Naturgy Ireland is complementary to its existing business.

"With the strong pipeline of energy services and renewables that Naturgy brings to the table, the agreement will support the further development of our portfolio of sustainable and renewable offerings for the large energy supply sector. It leaves us well-positioned to lead the energy transition for our customers in Ireland," Mr Kenny added.

The acquisition by Flogas is subject to approval by the Competition and Consumer Protection Commission in Ireland.

Once approved, Flogas said the deal is expected to complete by the end of the year.