GIP takes 25% stake in UK gas distributor
Private equity firm Global Infrastructure Partners (GIP) announced on December 22 it was acquiring a 25% stake in UK gas distributor Scotia Gas Networks (SGN) from Canada's OMERS.
SNG provides gas to 6mn homes and businesses in the southeast of England and Scotland, and has a regulated asset value of £6bn ($8bn) and an annual turnover of more than £1.23bn ($1.6bn). GIP said it was well positioned to play a key role in the UK's decarbonisation, by supporting the transition from methane to hydrogen.
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"We regard SGN as the premier gas DNO in the UK and a key player in the energy transition," GIP's managing partner Adebayo Ogunlesi commented. "The conversion of gas distribution networks into hydrogen ready infrastructure represents a unique opportunity to significantly grow the company while supporting the UK’s net zero goals through the adoption of green hydrogen."
The transaction is due to be closed in the first quarter of 2022. GIP did not disclose how much it was paying for the stake, although UK energy group SSE earlier this year sold its 33.3% interest in SGN for $1.7bn to Ontario Teachers' Pension Plan Board and Brookfield Super-Core Infrastructure Partners.