Plenty of interest in Singapore Power’s Jemena stake

Jemena owns Australian energy infrastructure assets, including gas pipelines and gas and electricity networks in Victoria, NSW, Queensland and the Northern Territory.

Who said there were no buyers for Singapore Power’s stake in Jemena?

DataRoom understands that it is not just GIP looking, but Australian super funds as well.

Singapore Power has been moving to offload its 40 per cent interest in the Australian energy infrastructure company since the start of the year through Goldman Sachs, and for most of that time, the understanding is that file has sat on the desks of most deal makers, who have little idea what party would buy the asset, partly due to its size.

But GIP is still around the hoop, say sources, and potentially others.

It is expected that the stake would sell for about $2bn, given that it is on Singapore Power’s books for $1.6bn.

One of the dilemmas for Singapore Power is that the assets do not have gas reserves to support the pipelines, and the stranding risks, where assets are no longer economical, are real.

Jemena owns Australian energy infrastructure assets, including gas pipelines and gas and electricity networks in Victoria, NSW, Queensland and the Northern Territory.

It is 60 per cent owned by China’s State Grid and 40 per cent by Singapore Power.

GIP is an infrastructure investment fund that is based in New York with $US112bn under management and it’s been a busy time in Australia of late.

The sale comes as energy source and supply remains high on the agenda when it comes to the political debate, with next year’s federal election shaping up to be one fought over the future of uranium and gas versus renewable energy in Australia.