Total sells North Sea midstream assets for £585M

Total has signed an agreement to sell all of its interests in the Frigg UK (FUKA) pipeline, the Shetland Island Regional Gas Export (SIRGE) system, and the St. Fergus gas terminal to North Sea Midstream Partners, an affiliate of US-based private equity firm ArcLight Capital, for £585 million ($905 million).  

The FUKA pipeline is a 362-kilometer, 32-in. gas pipeline that was originally constructed in 1977 to connect the Frigg Field on the UK–Norway median line to the St. Fergus Gas Terminal in Scotland. While the Frigg Field is now decommissioned, the FUKA pipeline is still operational, delivering gas from some 20 fields in the Northern North Sea to the terminal at St Fergus. Total holds a 100% operated interest in the FUKA pipeline.

The SIRGE system is a 234-kilometer, 30-in. gas pipeline with a capacity of 665 MMscf/d connecting the Shetland gas plant to the FUKA pipeline. Total holds a 67% operated interest in the SIRGE pipeline alongside Dong E&P (UK) Ltd. (18.3%), Chevron North Sea Ltd. (7.2%) and OMV (UK) Ltd. (7.5%).

The St. Fergus gas terminal is a three-train processing plant with a capacity of 2,648 million cubic feet of gas per day (MMscf/d), currently serving more than 20 fields. Total holds a 100% operated interest in the terminal.

Following the completion of the sale, North Sea Midstream Partners will have an agreement with px Group for the operation and maintenance of the assets. 

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