Wren House Infrastructure has bought North Sea Midstream Partners (NSMP), the largest independent North Sea midstream business, from ArcLight Capital Partners.
Wren House, a global infrastructure investor and affiliate of ArcLight Capital Partners, will acquire ArcLight’s entire stake in the company.
NSMP has interest in and operates four large scale natural gas transportation and processing assets in and around the North Sea. The assets, which form a key part of the UK’s gas infrastructure, include a 67% operated interest in the Shetland Island Regional Gas Export System pipeline and a 100% operated interest in the Frigg UK pipeline.
NSMP also owns a 100% operated interest in the associated St. Fergus Gas Terminal and the Teesside Gas Processing Plant.
The company was established in 2012 by ArcLight to acquire and consolidate assets in the midstream sector of the North Sea’s oil and gas industry.
The transaction is expected to complete in 2018.
Hakim Drissi Kaitouni, managing director of Wren House, says: ‘This acquisition underlines Wren House’s long-term strategy of investing in superior quality platforms. NSMP’s catchment areas, in particular the West of Shetland basin, represent one of the most promising areas in terms of exploration and future developments. Our deep experience in energy infrastructure, operational expertise and financial strength make Wren House uniquely qualified to acquire NSMP.’
Andy Heppel, CEO of NSMP, adds: ‘We are proud to have worked with ArcLight to successfully acquire and integrate the TGPP, St. Fergus, FUKA and SIRGE investments and build NSMP to be the largest independent midstream business serving both the UK and Norwegian sector of the North Sea.
‘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.’