BG Group gets rid of holding in major North Sea gas pipeline

Marion Dakers
BG GROUP is selling off its majority stake in one of the North Sea’s biggest gas pipelines for as much as £562m.

The London-listed firm said it will still have the right to transport fuel through the Central Area Transmission System (Cats) following the sale of a 62.78 per cent stake to investment group Antin Infrastructure Partners.

BG Group said the disposal is part of its ongoing portfolio management. The 404km-long pipeline is capable of transporting a fifth of the UK’s gas needs every day from the North Sea to a terminal at Teesside, according to operator and minority owner BP.

BG expects to book a profit of around $700m (£412m) on the sale after tax and impairments.

“At a time when its balance sheet remains under some pressure, the divestment ... represents a sensible release of capital," said Lucas Herrmann, an analyst at Deutsche Bank.

Shares in BG Group closed up 0.2 per cent.

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