New owner for UK gas plant
A US-based private equity firm has bought a UK gas terminal which will serve the UK North Sea's forthcoming Breagh gas development.
ArcLight Capital head-quartered in Boston in the US has formed North Sea Midstream Partners and bought up Teesside Gas Processing Plant Limited (TGPP) which is being developed to handle Breagh gas.
The deal was done just days the Christmas break between ArcLight and senior management at TGPP and the former chief executive of Venture Production, Mike Wagstaff. Venture was bought by Centrica in 2009.
TGGP operates at Seal Sands in Teesside with up to 450 Mmcf/d of processing capacity. It receives gas via the CATS pipeline– the Central Area Transmission System. Plant capacity is being boosted by a second train adding a further 225 Mmcf/d of processing capacity to handle output from the Breagh gas field operated by RWE.
Daniel Revers, a co-founder of ArcLight, in announcing the deal said: “Management at TGPP have done an outstanding job over the last five years repositioning TGPP as a truly independent, customer-focused asset providing reliable, value added services to a host of majors, utilities and independent producers in the North Sea .”
He added: “We are looking forward to working with management to continue the development of the business and are particularly pleased to have the opportunity to work again with Mike Wagstaff.”
Andy Heppel and David O’Donnell will continue as chief executive and commercial director at TGPP and Mike Wagstaff will be chairman of NSMP. All three will be equity owners in NSMP along with ArcLight.