Marine Link
Friday, December 9, 2016

CATS Pipeline & Infrastructure Sold for $954m

June 17, 2014

BG Group

BG Group

BG Group 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 $954 million.
Under the agreement, BG Group (BRGXF) will sell its 62.78% interest in CATS for a consideration comprising $888 million on completion of the transaction and a deferred amount of $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 anticipated the 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.





 



 
Maritime Reporter Magazine Cover Nov 2016 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News