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SL Capital Partners invests in Dutch gas pipeline

SL Capital Partners (SL Capital), a private markets arm of global asset manager Aberdeen Standard Investments, has agreed to acquire Nederlandse Aardolie Maatschappij BV’s (NAM) 18 per cent interest in the Noordgastransport (NGT) Extension system, a pipeline transporting natural gas that is principally produced from the Dutch Continental Shelf.

The system has been operated by Engie since inception.
The NGT system incorporates a 178km 36” pipeline constructed in 1975, a 140km 36” extension constructed in 1999 and a processing plant located onshore at Uithuizen. 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.
NAM will continue to use the pipeline to export its offshore gas and staff are not affected by the sale.
The acquisition will be funded through SL Capital’s infrastructure fund, SL Capital Infrastructure I LP (SLCI I). The fund is focused on investing in core infrastructure assets in Europe, and already holds five other investments including hydro-electric plants in Norway, a gas distribution business in Finland, and new trains across the UK.
Gerald Schotman, director NAM, says: “We are delighted to announce sale of our interest in the NGT extension. Twenty years ago, we contributed to the realisation of this important infrastructure for gas transport. Now that system has been established. This divestment is a logical next step in our strategy to focus on exploration and production of natural gas. At the same time, we are enhancing the sustainability of our platforms with new and innovative techniques, simplifying our installations and thereby limiting emissions and costs. Gas production in the North Sea will remain an important part of the Dutch energy mix in the coming decades.’’
Dominic Helmsley, Head of SL Capital Infrastructure, says: “This is SL Capital’s first Dutch infrastructure investment and our first foray into the mid-stream 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.”

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