BG sells interest in CATS pipeline and associated infrastructure

BG Group has announced that it has 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 US$ 954 million at current exchange rates.

Under the agreement, BG Group will sell its 62.78% interest in CATS for a consideration comprising £523 million (approximately US$ 888 million) on completion of the transaction and a deferred amount of £39 million (approximately US$ 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 km, 1700 million ft³/d capacity subsea pipeline and a two-train onshore gas processing terminal at Teesside which has capacity of 1 200 million ft³/d.

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 US$ 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 Q2.

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.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/17062014/bg_sells_interest_in_cats_pipeline_and_associated_infrastructure/