BP Sells Stakes in U.S. Natural Gas Pipeline Network

By Sarah McFarlane, David French, and Ron Bousso
LONDON/NEW YORK (Reuters) – BP (NYSE:BP) is seeking buyers for a stake in its U.S. natural gas pipeline network, as reported by four sources familiar with the matter.

The British energy company aims to raise up to $3 billion from this sale, with potential plans to sell up to a 49% stake in the business, according to two insiders. This initiative is part of BP CEO Murray Auchincloss's strategy to reduce the company's rising debt levels, as noted by two other sources.

BP has declined to comment. The sources requested anonymity as they were not authorized to discuss the matter publicly.

The company is under investor pressure to enhance performance and profitability, especially amid concerns regarding its energy transition strategy. Plans are also in place to sell stakes in its Lightsource BP solar business and its U.S. onshore and offshore wind operations. Auchincloss is set to update the company's strategy in February.

BP’s net debt rose to $24.3 billion at the end of September, up from $22.3 billion a year earlier, primarily due to lower-than-expected asset disposals as stated in its third-quarter results.

So far this year, BP's shares have decreased by over 18%, the poorest performance compared to its rivals. In contrast, Shell (LON:SHEL) shares have fallen by 3%, while ExxonMobil (NYSE:XOM) has increased by 14%, and Chevron (NYSE:CVX) is up nearly 7%.

The U.S. oil and gas pipeline sector has seen rising consolidation as production increases, making existing assets more valuable due to challenges with new pipeline permits. BP owns around 1,500 miles (2414 km) of pipelines that transport 1.1 million barrels of crude, natural gas, and fuels per day across the United States, according to its website.