Wren House, the UK investment arm of Kuwait’s sovereign wealth fund (KIA), has agreed to purchase the pipeline firm North Sea Midstream Partners (NSMP) from ArcLight Capital for roughly $1.7 billion, according to Reuters.
Wren House competed with JP Morgan, Blackstone, and private equity fund KKR to buy NSMP.
“Wren House was bidding against some very big players and they simply offered the best terms,” an unnamed source told Reuters.
NSMP owns several natural gas pipelines in the UK, including a 67% stake in the SIRGE and FUKA pipelines which transport natural gas from North Sea and West of Shetlands basin fields. The firm also holds controlling stakes in the St Fergus Gas Terminal and Teesside Gas Processing Plant, The Kuwait Times reported.
Wren House holds a 25% stake in Spanish gas and electricity giant, Natural Gas Fonensa, in which it has invested $550 million.
The KIA holds stakes in Associated British Ports, London City Airport and Thames Water, and through Wren House, has embarked on a strategy of long-term investments in European energy infrastructure. The KIA is the fourth-largest sovereign wealth fund in the world, following Norway, China and the UAE, managing an estimated $592 billion in assets.