BG Group has agreed to sell its majority stake in a North Sea gas pipeline to Antin Infrastructure Partners for £562m.
Under the terms of the agreement, BG will sell its 62.78% stake in the central area transmission system (CATS) gas pipeline for £523m and an extra deferred amount of £39m.
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The sale includes associated infrastructure of the pipeline and BG will retain its rights to capacity in CATS.
CATS features a fixed-riser platform connected to the Everest oil and gas platform.
It also houses a 404km subsea pipeline with a capacity of 1,700 million standard cubic feet of gas per day and a two-train onshore gas processing terminal at Teesside with a capacity of 1,200 million standard cubic feet of gas per day.
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The pipeline transports gas from various central North Sea fields, including Armada, Everest and Lomond, to Teesside in north-east England.
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By GlobalDataThe transaction, which is planned to be completed in the second half of 2014, is expected to generate a post-tax profit for BG of approximately $700m.
BG said the sale is in-line with its strategy to actively manage asset portfolio and deliver value to shareholders.
BG operates three key platforms and infrastructure hubs in the central North Sea.
Image: BG will sell its 62.78% stake in the CATS gas pipeline. Photo: courtesy of BG Group.
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