EU Clears Kuwait's UK Pipes Deal
State-owned Kuwait Investment Authority (KIA) has been cleared by the European Commission (EC) to acquire a package of UK midstream assets, including pipes and gas terminals at St Fergus and Teesside.
ArcLight Capital Partners said July 23 it agreed the sale of its entire stake in North Sea Midstream Partners (NSMP) to KIA-owned Wren House. The EC said September 17 the deal raised no competition concerns.
NSMP owns a 67% operated interest in the 234km SIRGE pipeline with capacity to transport 665 mn ft3/d gas from the UK West of Shetland basin, and a 100% operated interest in the FUKA (Frigg UK) pipe that transports gas from the SIRGE pipeline and various fields in the UK northern and central North Sea. NSMP also owns a 100% operated interest in the associated St. Fergus gas terminal and the Teesside gas process plant (TGPP) which processes gas from the UK central and southern North Sea. No value was disclosed for the transaction then or since; it is expected to conclude before the end of this year.
NSMP was formed in 2012 by ArcLight, by former Venture Petroleum CEO Mike Wagstaff, and by senior TGPP management including its CEO Andy Heppel.
Remaining part-owners of SIRGE are UK gas producers Ineos 18.26%, Chevron 7.18% and Siccar Point 7.52%. (Banner photo: KIA new headquarters, credit: the building's designers KEO)