Ancala Partners is investing in a North Sea gas system and pipeline on behalf of pension funds.
The independent infrastructure investment manager said its Ancala Midstream subsidiary is buying Apache Corporation’s interest in the Scottish Area Gas Evacuation (SAGE) system and Beryl pipeline.
Ancala Midstream, financed by pension-fund clients of Ancala Partners, will take Apache’s 30.28% share of SAGE and its 60.56% interest in the Beryl pipeline.
The Wood Group will become operating partner once the deal completes early next year.
The SAGE system transports gas through the 323km (200 mile) SAGE pipeline between the northern part of the Central North Sea to the SAGE terminal at St Fergus, about 48 kilometres (30 miles) north of Aberdeen, where it is processed on behalf of North Sea gas producers.
Ancala Midstream’s management team will be led by Jim Halliday, who has been appointed as chief executive.
He said: “Our aim in making this investment is to maximise throughput for all producers, extend the life of the system, connect new fields and support efforts to maximise economic recovery in the North Sea for many years to come.
“Our priority through the transition period will be the continued safe operation of the plant and pipeline, regular and transparent engagement with all stakeholders and an efficient handover of operations from Apache.”
Ancala Partners, which focuses on core mid-market UK infrastructure assets, recently bought a UK water company for £71.2m (€79.8m).
The firm raised an initial £160m for a UK infrastructure vehicle – aiming to raise £400m – for its Mid-Market Infrastructure Platform.
The firm’s investments include a natural gas and LPG distribution and supply business, a portfolio of solar sites and a developer, owner and operator of hydro power plants.