CATS pipeline

Scottish oil and gas firm Wood Group has signed a $250m deal with Antin Infrastructure Partners to operate the Central Area Transmission System (CATS) in the North Sea.

Wood Group PSN (WGPSN) will serve as act as the duty holder of the CATS terminal and pipeline for ten years and will be responsible for its daily operations.

The firm will arrange a dedicated Wood Group Kenny (WGK) team for the project in Glasgow, which will work with the operating services team.

CATS enables gas transmission from the Central North Sea to its terminal in Teesside, UK.

The gas is delivered through the 404km pipeline from the Central North Sea, which is then processed at the terminal for major North Sea gas producers.

At present, the CATS enables gas transmission from 34 producing fields with a high portion of contracted revenues.

The agreement follows Antin’s acquisition of BP’s share in the transmission system, which takes its stake to 99%.

WGPSN is expected to take over CATS operation towards 2015-end after BP and Antin IP close their deal.

"We will draw on the strength of Wood Group for our new client and our priority is to ensure a safe and smooth transition of operatorship with particular focus on retaining and developing the existing CATS workforce."

WGPSN UK and Africa managing director James Crawford said: "This partnership enables us to extend our existing duty holder capabilities and expertise into new markets.

"By leveraging the expertise of WGPSN and WGK, we will draw on the strength of Wood Group for our new client and our priority is to ensure a safe and smooth transition of operatorship with particular focus on retaining and developing the existing CATS workforce.

"We have already established a strong relationship with Antin IP and we are looking forward to working with them to grow and develop CATS."

CATS is a third-party system, which transported around 13% of domestic gas produced in the UK in 2013.

The system has a riser platform near the BG operated Everest gas field in the Central North Sea which can handle more than 48 million standard cubic metres of gas.


Image: CATS pipeline extends for around 404km. Photo: courtesy of Teesside Gas Processing Plant Limited.