Transforming Teesside Gas transportation

Challenge

Teesside Gas Transportation Limited (TGTL) was originally part of the Enron Group and is a dedicated gas transportation company that owns long term capacity rights in the CATS gas pipeline in the UK Central North Sea. SLR assisted in the development of a new business plan which was presented to the Enron Administrators.

Solution

This plan was accepted, and SLR provided strategic, commercial and technical support to the board in their negotiations with TGTL customers.

This led to an initial stabilisation agreement and ultimately a long term transportation agreement.

With the future of the company secured, the creditors then took the decision to sell the company. SLR assisted PwC and TGTL in this process at the marketing stage, developing the Information Memorandum and introducing the opportunity to its network of upstream and financial contacts.

Impact

The company was able to negotiate a package of agreements with its key stakeholders to stabilise its situation and secured its long term viability an value. The company was ultimately sold to Deutsche Bank for over £100 million, which represented a significant premium for the Enron creditors compared to their initial valuation.