A French energy giant is rumoured to have its sights on Luxembourg in a bid to decentralise its storage operations.

According to AFP, French energy union CGT announced that GDF-Suez plans to create a company based in Luxembourg where it would base storage activities and benefit from tax savings.

“GDF-Suez wants to create a structure based in Luxembourg that will carry all international activities for storage to make tax savings," the union revealed in a statement.

It added that among the storage operations which would be relocated were the German, English and Spanish subsidiaries.

The union said that the company council had been asked by the board of directors to create a subsidiary of Storengy (itself already a subsidiary of GDF-Suez handling underground gas storage) which would be responsible for carrying out activities internationally.

The proposal is viewed sceptically by the union, which notes that the French state holds a 36% share in GDF-Suez and should oppose the transfer of funds to what they refer to as a “fiscal paradise.”