InfraVia buys stake in Dutch pipeline

The French fund manager is currently deploying its €530 million Fund II, which has now invested in five assets.

Paris-based InfraVia has acquired 20 percent of Noordgastransport (NGT), a Dutch gas transportation system.

The stake, bought for an undisclosed amount, previously belonged to French utility GDF Suez. InfraVia will now control NGT alongside Copenhagen-based PensionDanmark, Exxon Mobil subsidiary XTO Energy, US oil and gas company Rosewood Resources and GDF Suez, which remains a shareholder in the business. The deal received clearance from the EU authorities last month.

With a 42 million cubic metre per day (MMcm/d) capacity and about 470 kilometres of pipelines, NGT is one of the three major systems connecting the offshore gas fields of the Dutch and UK sectors of the North Sea to the Dutch grid. It provides gas producers with access to pricing at the Dutch Title Transfer Facility (TTF) and a channel to export markets on the European continent and the UK.

“The Netherlands have developed over the years an attractive gas policy framework and we
believe that NGT is well positioned to benefit from the continuous development of the North
Sea gas reserves”, said Vincent Levita, founder and chief executive of InfraVia, in a statement.

The transaction will be funded through InfraVia’s European Fund II, which reached a final close last January on €530 million. The vehicle had an original target of €400 million, twice the size of its predecessor.

The fund, which was 25 percent-deployed as at last summer, had previously invested in four assets. These include the A8 motorway in Germany, the City of Bordeaux regulated gas distribution business (Régaz), the Tempo public-private partnership (PPP) project in France and the RiG electricity distribution network in Finland.