LONDON, UK: Pantheon Infrastructure, the listed global infrastructure fund, has agreed to invest approximately £40m alongside a Macquarie Asset Management-led consortium, which has agreed to acquire a 60% stake in the UK gas transmission and metering business of National Grid.
The business owns and operates the UK’s regulated national gas transmission system and an independent gas metering business. The 7,660-kilometre transmission system plays a critical role in the UK energy landscape, reliably transporting the gas needed to heat homes and power industry and electricity generation. The consortium intends to support the UK Government’s commitment toward Net Zero by 2050 by facilitating the shift toward low carbon heating.
The investment is in line with PINT’s stated strategy of building a diversified portfolio of global infrastructure assets. Specifically, the investment is in the regulated utilities sector, which is attractive given the high visibility of stable and inflation-linked cash flows, as well as growth opportunities available with the transition toward Net Zero.
Richard Sem, Partner at Pantheon Ventures, PINT’s investment manager, said: “This is a rare opportunity for investors to access one of the UK’s essential energy infrastructure businesses, providing long-term, inflation-linked cash flows under a stable regulatory framework. There’s an increasing need for investment in transmission networks and supporting infrastructure as these businesses adapt to the need for a lower-carbon energy mix, and we’re excited to announce this next investment as we build out the portfolio.”