BG sells CATS pipeline for $954M

BG Group today announced it had agreed to the sale of its equity interest in the Central Area Transmission System (CATS) gas pipeline in the UK North Sea and associated infrastructure to Antin Infrastructure Partners for total proceeds up to £562 million, or approximately $954 million at current exchange rates.

Everest platform

Under the agreement, BG Group will sell its 62.78% interest in CATS for a consideration comprising £523 million (approximately $888 million) on completion of the transaction and a deferred amount of £39 million (approximately $66 million).

The sale does not impact BG Group’s rights to capacity in CATS.

CATS comprises a fixed-riser platform linked to the Everest oil and gas platform, a 404-kilometre, 1 700 million-standard-cubic-feet-of-gas-per-day (mmscfd) capacity subsea pipeline and a two-train onshore gas processing terminal at Teesside which has capacity of 1 200 mmscfd.

It is expectedthe transaction will close in the second half of 2014.

The sale of CATS is expected, on completion, to create a post-tax profit on disposal of approximately $700 million. This may be partly offset by a potential impairment of BG Group’s associated UK North Sea assets following the categorisation of the Group’s interest in CATS as held for sale in the second quarter.

“The sale of the CATS interest is in line with BG Group’s strategy to actively manage its asset portfolio and deliver value to shareholders,” BG Group said in a press release.

 

June 17, 2014

 

Share this article

Follow Offshore Energy Today

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Offshore Energy Exhibition and Conference (OEEC) 2020

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply