Kellas Midstream owns and operates key gas infrastructure in the UK and Southern North Sea
Image: North Sea pipeline owner Kellas sold to Blackrock, GIC. Photo: courtesy of rawpixel/Pixabay.
Private-equity firm Antin Infrastructure Partners has agreed to sell Kellas Midstream to BlackRock’s Global Energy & Power Infrastructure Funds (GEPIF III) and Singapore-based investor GIC.
Kellas Midstream owns and operates key gas infrastructure in the UK and Southern North Sea. It owns and operates the Central Area Transmission System (CATS), which carries gas from the central North Sea to a terminal in Teesside.
Gas infrastructure details of Kellas Midstream
The company also possesses a subsea pipeline in the Southern North Sea named Esmond Transportation System, which connects four producing fields to the Bacton gas terminal on the North Sea coast.
The midstream company’s assets also include the Humber Gathering System, which consists of the infrastructure required for the development of the large Tolmount gas field in the Southern North Sea.
Kellas Midstream managing director Andy Hessell said: “We thank Antin for their significant support over the past five years.
“GIC and the BlackRock GEPIF team recognise the growth potential of the business we have built and share our strategy to continue to invest, grow and build our portfolio of midstream assets and serve all our customers in the North Sea.
“We look forward to working with our new partners.”
The deal is expected to be completed in early 2020.
Antin managing partner Mark Crosbie said: “We are proud of the significant growth and strategic transformation accomplished during Antin’s ownership over the past five years.
“We are also grateful for the strong partnership and outstanding performance of Kellas Midstream’s talented management team and dedicated employees.”
In 2014, Antin had acquired a 63% stake in CATS from BG (now Shell). The subsequent year, Antin increased its stake to 99% through the acquisition of BP’s 36% interest in the system.
For the transaction, Bank of America Securities and Citi served as financial advisor to Antin, while Weil, Gotshal & Manges acted as its legal advisor.
On the other hand, RBC Capital Markets and Scotiabank served as financial advisors to BlackRock Real Assets and GIC, and Herbert Smith Freehills and Xodus acted as their legal and technical advisors respectively.