The sale of a network of gas pipeline assets in the UK might yield approximately $2 billion, according to people familiar with the subject. BlackRock Inc. and Singaporean sovereign wealth fund GIC Pte are studying this possibility
The individuals speaking, who requested anonymity due to the sensitive nature of the subject, stated that the owners are collaborating with investment firm Jefferies Financial Group Inc. in their search for possible purchasers for Kellas Midstream.
The 404-kilometer (251-mile) subsea Central Area Transmission System, which carries gas from the North Sea to the United Kingdom, is part of the company's pipe network.
According to the sources, infrastructure funds and financial investors looking to get into the sector are expected to be interested in the company. According to the sources, negotiations are still in their early stages and the formal sale procedure has not yet begun.
According to the sources, if the owners are unable to locate qualified bids, they may opt to keep the asset. No comment was given by BlackRock, GIC, or Jefferies representatives.
In 2019, Antin Infrastructure Partners and a BlackRock infrastructure fund reached an agreement to purchase Kellas from GIC. Due to the security and predictability of their returns, investors are eager to get their hands on these assets
The Portland Natural Gas Transmission System, owned by TC Energy Corp., was slated to be purchased by the investment firms BlackRock and Morgan Stanley for approximately $1.14 billion in March.
As stated on its website, Kellas is the proud owner of the CATS pipeline in addition to the Esmond Transportation System pipeline network and the Humber Gathering System, a project aimed at transporting gas from the Tolmount Main field.
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