Aberdeen Standard Investments’ private markets arm SL Capital Partners is buying an 18% interest in the Noordgastransport (NGT) Extension system, in what is the unit’s first Dutch infrastructure investment.
The seller is Dutch exploration and production company Nederlandse Aardolie Maatschappij (NAM).
Dominic Helmsley, head of SL Capital Infrastructure, said: “This is SL Capital’s first Dutch infrastructure investment and our first foray into the midstream sector which is principally the transportation, storage and processing of natural resources.
“We believe the pipeline system will capture significant volumes of natural gas, and the investment is part of a wider strategy to develop a strong presence in the European gas and midstream sector.”
The NGT Extension system is a pipeline transporting natural gas mainly produced from the Dutch Continental Shelf, and has been operated by Engie since it was built.
The acquisition will be funded through the SL Capital Infrastructure I fund, which focuses on core infrastructure assets in Europe.
The fund already has five other investments including hydro-electric plants in Norway, a gas distribution business in Finland and new trains in the UK.
The system connects about 75 platforms belonging to different operators to the processing facility.
Aberdeen Standard Investments is the asset management business of Standard Life Aberdeen, which was formed from the merger of Standard Life and Aberdeen Asset Management last month.
NAM is a joint venture of Shell and Exxon Mobile.