BG Group announced today that it has completed the sale of its 62.78% equity interest in the Central Area Transmission System (CATS) gas pipeline in the UK North Sea and associated infrastructure to Antin Infrastructure Partners.
Total proceeds from the transaction, announced on 17 June 2014, are up to £562 million, or approximately US$961 million at current exchange rates, comprising a payment on completion of £523 million and a deferred amount up to £39 million.
A post-tax profit on disposal of approximately US$700 million will be recorded in BG Group's Q3 accounts. This may be partly offset by a potential impairment of BG Group's associated UK North Sea assets following the categorization of the group's interest in CATS as held for sale in Q2.
CATS comprises a fixed-riser platform linked to the Everest oil and gas platform, a 404km, 1700Mcf/d capacity subsea pipeline and a two-train onshore gas processing terminal at Teesside which has capacity of 1200Mscf/d.