Scottish and Southern Energy has agreed to pay $423m to boost its presence in the gas market.
It is buying natural gas assets and infrastructure in three regions of the North Sea from US energy company Hess. This will be enough to provide around 8% of the gas it needs to supply its customers. Chief executive Ian Marchant said:
This timely acquisition will enable SSE to enter the upstream gas sector in a measured way by buying proven and geographically diverse production assets. These assets will provide a new source of primary fuel and a hedge for our gas generation and supply activities. The acquisition will also give us involvement throughout the gas chain - production, transmission, storage, distribution and supply.
SSE is also one of those said to be in the running to buy EDF's UK power network for around £4bn, the others being Hong Kong's Cheung Kong Infrastructure and a consortium including Macquarie, Canada Pension Plan and the Abu Dhabi investment authority.
News of the Hess purchase has lifted the company's shares 2p to £11.03.
