TAQA sells Dutch pipeline stake for US$ 240 million

Abu Dhabi National Energy CO (TAQA) is selling its 40% stake in a Dutch natural gas pipeline to a Danish pension fund for US$ 240 million. According to TAQA, the investment no longer meets its growth strategy.

The sale of the stake in Noordgastransport (NGT) to pension fund PensionDanmark A/S, which is still subject to regulatory approvals, is expected to close by the end of 2013, TAQA said.

David Cook, Executive Officer of Oil and Gas Operations, said TAQA’s strategy was to maximise its portfolio’s value and it would focus on an US$ 1 billion storage project, Bergermeer, in which it has a 60% stake. Phase one of operations at Bergermeer, which will be Europe’s largest gas storage facility, is scheduled to begin in the middle of next year, with full capacity to come online in 2015.

Cook said, “We decided that the investment in the Noordgastransport pipeline no longer fitted with our growth strategy in the Netherlands, which is focused on maximising the value of our portfolio and delivering Gas Storage Bergermeer.

NGT consists of approximately 470 km of offshore pipeline with a daily gas capacity of around 42 million m³. TAQA acquired its stake in NGT when it took over its parent company DSM Energy in July 2009, from Royal DSM, a Dutch life sciences and materials company for US$ 380 million.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/11112013/taqa_sells_dutch_pipeline_stake_for_us_240_million/