Kuwait agrees $1.7bn deal for North Sea infrastructure with ArcLight Capital

Kuwait’s sovereign wealth fund has struck a $1.7bn deal to buy a major chunk of North Sea energy infrastructure from private equity company ArcLight Capital, according to a person familiar with the matter.

Wren Capital, the London-based infrastructure arm of the Kuwait Investment Authority, will buy the North Sea Midstream Partners (NSPM) business, giving it control over major oil and gas pipelines and processing facilities, including the St. Fergus Gas Terminal in Scotland and the Teeside Gas Processing Plant.

Boston-based ArcLight did not immediately respond to a request for comment.

The move comes as deal making activity in the North Sea picks up alongside a recovery in energy prices, with Brent crude oil rising to the highest level in four years earlier this summer, touching $80 a barrel.

The KIA is the world’s fourth largest sovereign wealth fund, managing almost $600bn, with Wren House already acquiring stakes in UK infrastructure such as London City Airport and Thames Water.

The deal, which was first reported by Reuters, includes NSMP’s 67 per cent interest in the SIRGE pipeline from the West of Shetland basin and an 100 per cent stake in the FUKA pipeline that brings gas onshore from the central and northern portions of the North Sea.

A spokesperson for Wren House declined to comment.


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