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.