Pension-Backed Ancala Partners Invests in North Sea Gas System and Pipeline

Posted on 12/12/2016

European institutional investors are keen on investing in infrastructure deals where there is a natural monopoly with long-term inflation-protected agreements. London-based Ancala Partners LLP, through its Ancala Midstream subsidiary, is buying an ownership interest into a North Sea gas system and pipeline. Houston-based Apache Corporation is selling its interest in the Scottish Area Gas Evacuation (SAGE) system and Beryl pipeline. Ancala Partners is buying Apache’s 30.28% share of SAGE and its 60.56% interest in the Beryl pipeline. The deal is being funded by Ancala’s pension fund clients. Carrying out the daily duties, the operation partner of the assets will be The Wood Group, an international energy services company. The SAGE system transports gas through the 323 kilometer SAGE pipeline between the northern part of the Central North Sea to the SAGE terminal at St Fergus, about 48 kilometers north of Aberdeen, where it is processed on behalf of North Sea gas producers. The SAGE network transports approximately 10% of Great Britain’s gas production.

One of the pension’s that is backing the deal is Denmark’s Industriens Pension, which is investing 900 million DKK into it.