The Abu Dhabi National Energy Company, known as TAQA, has agreed to sell its 40 percent stake in a natural gas pipeline in the Netherlands to a Danish pension fund, the state-owned firm said today.
TAQA will sell the stake in the Noordgastransport B.V. (NGT) natural gas pipeline for $240 million, according to a notice posted on the Abu Dhabi Securities Exchange website.
The sale to pension fund PensionDanmark is expected to close by the end of 2013, TAQA said.
NGT consists of approximately 470 kilometres of offshore pipeline with a daily gas capacity of around 42 million cubic metres, TAQA said in a statement. The Abu Dhabi-based firm acquired its 40 percent stake in the pipeline, which is operated by GDF Suez E&P, in 2009 from Royal DSM N.V.
TAQA is the largest UAE investor in the Netherlands, the company says. Its activities include gas storage as well as the exploration and production of oil and gas. TAQA owns and operates a gas storage facility in Alkmaar and is developing Gas Storage Bergermeer, which will be the largest open-access gas storage facility in Europe when it reaches full capacity in 2015.
“We decided that the investment in the Noordgastransport pipeline no longer fitted with our growth strategy in the Netherlands, which is focused on maximizing the value of our portfolio and delivering Gas Storage Bergermeer,” said David Cook, TAQA’s Executive Officer and Head of Oil & Gas.