17th Jun 2014 06:51
LONDON (Alliance News) - BG Group PLC Tuesday said it will sell its 62.78% stake in the Central Area Transmission System gas pipeline in the UK North Sea to Antin Infrastructure Partners a total of up to GBP562 million, or about USD954 million, and expects to book a net profit of about USD700 million on the sale.
However, it cautioned that the profit gain may be partly offset by a potential impairment of its associated UK North Sea assets after its interest in CATS was categorised as held for sale in its accounts in the second quarter.
In a statement, BG Group said it will get GBP523 million when the deal is completed and a deferred payment of GBP39 million.
The deal, which is expected to close in the second half of 2014, includes associated infrastructure. However, BG Group will still be able to use the pipeline.
The CATS pipeline comprises a fixed-riser platform linked to the Everest oil and gas platform, a 404-kilometre, 1.7 billion-standard-cubic-feet-of-gas-per-day subsea pipeline and a two-train onshore gas processing terminal at Teesside.
According to the gas processing terminal's website, it has the capability to process up to 6% of UK demand for natural gas, up to 675 million cubic feet of gas a day. The plant processes gas from the UK Central North Sea and from the Southern North Sea for a number of large oil and gas companies.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
BG..L