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Victorian gas pipeline changes hands
The Mortlake Gas Pipeline stretching 83 kilometers across Victoria has been sold as part of Origin Energy’s $800 million asset divestment program.
Melissa Coade
Firms: King & Wood Mallesons (South Eastern Australian Gas Mortlake); Herbert Smith Freehills (Origin Energy)
Value: $245 million
Area: M&A
Key players: The King & Wood Mallesons team was led by partner Craig Rogers, and supported by partner Vishal Ahuja, and senior associates Liam Dunstan, Cameron Mew, and Theadora Tsangari.
The Herbert Smith Freehills team worked closely with Origin Energy’s in-house legal team throughout the transaction. The team was led by partner Rob Merrick, with support from senior associate Michael Boyce and solicitor Sophie Mony de Kerloy.
Deal significance:
The SEA Gas Mortlake partnership comprises APA Group and the Retail Employees Superannuation Trust (REST), each with a 50 per cent interest.
Origin has agreed to sell the Mortlake Pipeline to SEA Gas Mortlake for A$245m.
The Mortlake Pipeline, which is currently operated by a related party of SEA Gas Mortlake, supplies gas to Origin’s 550 MW gas-fired Mortlake Power Station in Victoria.
KWM Partner Craig Rogers said his team was delighted to have assisted the SEA Gas Mortlake partnership in the deal.
“We have thoroughly enjoyed working with the SEA Gas Mortlake Partnership to reach this important milestone on the transaction,” Mr Rogers said.
The transaction will complete after 30 June 2016 and is part of Origin’s asset divestment process.
KWM also advised the partnership on its arrangements with Origin for the provision of long-term gas transportation and storage services on the pipeline.
Herbert Smith Freehills lead partner Rob Merrick said that the successful execution of the deal continues to strengthen the firm’s relationship with Origin Energy.
