North Sea Midstream Partners (NSMP), an oil and gas pipeline firm that has activities in Scotland, is being bought by the UK infrastructure arm of Kuwait’s sovereign wealth fund.

Wren House, the London-based infrastructure division of the Kuwait Investment Authority (KIA), is buying NSMP for around £1.3 billion from ArcLight Capital, according to Reuters.

NSMP has a 67% interest in the SIRGE pipeline that transports gas from the West of Shetlands basin. It owns the FUKA pipeline which moves gas from the SIRGE pipeline and various fields in the northern and central North Sea.

It also owns the St. Fergus Gas Terminal in Peterhead and Teesside Gas Processing Plant. It includes Rhum gas field in the North Sea, 240 miles north east of Aberdeen, among its clients.

The Sovereign Wealth Fund Institute ranks KIA as the world’s fourth-biggest sovereign fund, managing $592 billion.

Wren House is headed by Hakim Drissi Kaitouni, a former investment banker. Its other investments in the UK include stakes in Associated British Ports, London City Airport and Thames Water.

Wren House is reported to have fought off bids from JP Morgan, Blackstone, and private equity fund KKR to buy NSMP.

A source told Reuters that Wren House was bidding against some very big players and offered the best overall terms, despite not tabling the highest value bid,

The current management team, including NSMP chief executive Andy Heppel, is expected to remain in place.