Antin Infrastructure Partners II acquisition of North Sea gas pipeline and processing facility

18 June 2014

Antin Infrastructure Partners is pleased to announce the acquisition of a 62.78% interest in CATS system, a North Sea gas pipeline and processing facility. 

The CATS system, operated by BP, transports gas through 404km of pipeline between the Central North Sea area and Teesside in the UK which is then processed on behalf of major North Sea gas producers. The North Sea is one of the most important and prolific oil and gas provinces in the world. The CATS system benefits from captive positioning as the sole commercial route for the evacuation of gas produced in a substantial number of gas field. It currently serves 34 producing fields with a high portion of contracted revenues. In 2015, CATS is forecast to account for the transportation of c.17% of UK domestic gas production.

Under the agreement, BG Group will sell its 62.78% interest in CATS for a consideration comprising £523 million (approximately €655 million) on completion of the transaction and a deferred amount of £39 million (approximately €49 million). 

Mark Crosbie, Managing Partner of Antin Infrastructure Partners, commented: "We are delighted to have reached this agreement with BG Group, a leading strategic player. This acquisition represents the first transaction in our second fund which reached a final close at €2bn earlier this month. It is entirely in line with our strategy, which identified the North Sea midstream sector as a key focus area.  The Central North Sea area served by CATS currently provides 40% of the UK’s gas supply and represents one of the most promising areas in terms of discoveries and future exploration. Through this transaction, we are delighted to provide capital to support the UK Oil and Gas sector".