Wren House acquiring North Sea pipelines group
An affiliate of ArcLight Capital Partners has agreed to sell its entire interest in North Sea Midstream Partners to Wren House Infrastructure Management.
ABERDEEN, UK – An affiliate of ArcLight Capital Partners has agreed to sell its entire interest in North Sea Midstream Partners (NSMP) to Wren House Infrastructure Management.
NSMP owns a 67% operated interest in the SIRGE pipeline that transports natural gas from fields in the West of Shetland basin and a 100% operated interest in the FUKA pipeline that transports gas from the SIRGE pipeline and various fields in the UK northern and central North Sea.
It also has a 100% operated stake in the associated St. Fergus gas terminal north of Aberdeen and the Teesside Gas Processing Plant (TGPP) in northeast England that processes gas from fields in the UK central and southern North Sea.
NSMP was formed in 2012 by affiliates of ArcLight, Mike Wagstaff (the former CEO of Venture Production) and senior management at TGPP, including the company’s current CEO Andy Heppel, their aims being to invest in North Sea midstream assets.
They went on to secure new business for the facilities via long-term contracts, implemented various operational initiatives, and helped to bring new fields online, such as the Greater Laggan Area west of Shetland, and Breagh and Stella Harrier in the North Sea.
Heppel said: “The combination of NSMP’s great base business with Wren House’s financial expertise and commitment to operational excellence will be the trigger for continued development of the NSMP infrastructure in the North Sea.”
The transaction should close later this year, subject to merger control clearance, with no changes planned to either the NSMP management team, or the operation of NSMP’s assets by the px Group.