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Independent Oil & Gas to buy Thames pipeline in North Sea

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Staff Writer | April 12, 2017
Independent Oil & Gas
Acquisition   A "nominal consideration"

Independent Oil & Gas is to buy the recently decommissioned Thames gas pipeline in the southern North Sea from Perenco UK, Tullow Oil SK and Centrica Resources, for a "nominal consideration", subject to regulatory consent.

The pipeline will enable the company to export about 300,000 cubic feet per day in gas from its assets in the southern North Sea, the Blythe and Vulcan Satellite hubs, to the Bacton gas terminal.

The acquisition will give the company complete control from field to market and enable it to deliver up to half a trillion cubic feet of gas resources to the UK market for 15 to 20 years starting from the end of next year.

No tariff will be payable for the transportation of the gas to Bacton, but a processing tariff will be payable to Perenco, the terminal owner.

Completion of the deal subject to regulatory consents and provision of security to Perenco to cover the cost of additional pipeline integrity surveys that may be required in the future, which is estimated to be about £500,000.

Once completed the company will export gas from the Blythe and Vulcan satellite hubs, which require an estimated maximum throughput of about 150m cubic feet per day, which is well within the pipeline's anticipated capacity, so it could have sufficient capacity to also export gas from the Harvey discovery.

Ahead of first gas export, the Company is also aiming to buy the onshore reception facilities at the Perenco Bacton terminal and a period of exclusivity has been agreed until the end of September 2018.


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