The energy giant, currently the operator of CATS, will sell its equity for å£324 million ($US486 million). Antin Infrastructure Partners already owns a majority interest in the operation following a deal with BP last year.
CATS, a combination of pipeline and processing facilities, transports and processes gas on behalf of most of the major North Sea gas producers. The infrastructure can handle more than 1.7 Bcf/d of natural gas.
The 404 km CATS pipeline, which transports about eight per cent of the UK’s gas demand, begins at a riser platform in the central North Sea and transports gas to a processing terminal in Teesside, on England”s north east coast.
CATS comprises:
- A riser platform located adjacent to the Everest platform in block 22/10;
- A 36 inch diameter, 404 km pipeline, from the riser platform to the gas terminal; and,
- A gas terminal at Seal Sands, Teesside, which occupies a 70 acre site and has a processing capacity of 1,200 MMcf/d.
BP said securing the new owner will ensure a better future for this key component of the North Sea’s infrastructure. The sale will be as a fully operational business, with staff expected to transfer to the new employer.
Subject to the receipt of regulatory and other third party approvals, BP aims to complete the sale and transfer of operatorship before the end of the year.
Antin will appoint a contract operator as duty holder of the CATS pipeline and associated infrastructure to operate the facilities on its behalf. The company expects to identify and appoint a contract operator during Q2 2015.
The sale does not impact BP’s rights to capacity in CATS.