Aberdeen Standard invests in Dutch gas pipeline

Aberdeen Standard Investments said its infrastructure team has made a second investment in a gas pipeline and processing system.

The team has acquired the InfraVia Capital Partners Managed Fund’s 20% interest in Noordgastransport (NGT) B.V., the owner of a pipeline and processing plant transporting and treating natural gas that is principally produced from the Dutch Continental Shelf.

Aberdeen Standard Investments manages £575.7 billion of assets worldwide and is the asset management business of Edinburgh-based Standard Life Aberdeen plc.

“The entire NGT system, which is operated by Neptune Energy, incorporates a 178km 36” pipeline constructed in 1975, a 140km 36” pipeline constructed in 1999 and a processing plant located onshore at Uithuizen,” said Aberdeen Standard Investments.

“The system connects approximately 75 platforms of different operators to the processing facility.

“After treatment, the gas is delivered to the pipeline network of Gas Transport Services, which manages the national gas transportation network.

“In total, NGT manages approximately 470km of pipelines, and is the longest established system in the Dutch North Sea, benefitting also from the largest catchment area offering a diversified portfolio of gas fields in production and development.”

The acquisition has been funded through SL Capital Infrastructure I LP Fund (SLCI I).

SLCI I is focused on investing in core infrastructure assets in Europe and already holds six other investments including a stake in the NGT extension pipeline, hydro-electric plants in Norway, a gas distribution business in Finland, and new trains across the UK.

Dominic Helmsley, head of economic infrastructure, Aberdeen Standard Investments said: “This second stake in the NGT pipeline system follows our strategy to develop a strong presence in the European gas and midstream sector.

“The investment provides us with exposure to a greater number of gas fields, therefore diversifying cash flows for investors in our infrastructure fund.

“We will continue to work closely with the other shareholders and management team for the pipeline system, to deliver natural gas onshore in a safe and reliable manner.”

Vincent Lévita, CEO, InfraVia Capital Partners said: “Since we acquired the 20% stake in NGT from Engie in 2014, the company has been performing well and has been providing high quality infrastructure to the North Sea gas producers.

“We believe that with the recent development activity in the North Sea and the quality of its infrastructure, NGT will continue to play a critical role in the Dutch gas industry”.