Projects

Cadent

Energy

Gas Distribution

Cadent owns and operates four of the UK’s eight Gas Distribution Networks (GDNs), supplying almost 50% of the population. Cadent operates and maintains the gas network, it doesn’t buy, own or sell the gas.

Sector

Energy

Gas Distribution

Location

Various, United Kingdom

Status

Operational

equity ownership

7.25%

financial close

March 2017 – 4.4%

June 2019 – 7.25%

term length

Regulated asset

About

Cadent manages a network of more than 131,000 kilometres of pipes, most of them underground, which transports gas throughout the North West, West Midlands, East Midlands, South Yorkshire, East of England and North London.

Gas distribution networks (‘GDNs’) are well-established, predictable, and strong cash-yielding businesses. Key attributes include:

Highly-predictable, long-term, low-volatility cash flows
A stable regulatory environment
Very long-life assets
Strong levels of inflation linkage

View website

Key impacts and benefits

Length of gas pipeline network

> 0,000 km

Customers connected to the gas network

c. 0 %

of UK population

Why we invested

INPP’s investment in Cadent strengthens its focus on investments in regulated assets delivering long-term, sustainable, inflation-linked revenues. This began in 2011 in the offshore transmission (OFTO) sector and then with investment into the Tideway project in 2015. The GDN assets are complementary to the other assets in INPP’s portfolio in terms of length and predictability of cash flow and also inflation protection.

Sustainable Development Goals (SDGs)

2030 Agenda for Sustainable Development adopted by UN Member States in 2015

SDGs supported:

SDG contribution

Outcomes

Cadent continues to be a leading voice on the importance of hydrogen in the future energy mix to achieve the UK’s net zero ambitions. Cadent’s HyNet project in the North West has made important progress which when completed will bring hydrogen to the industrial markets of the North West. Cadent are also studying the blending of hydrogen into the natural gas networks, which will both enhance the country’s energy mix and make material contribution to achieving the UK’s net zero targets.

In addition to supporting SDG 9, Industry, Innovation and Infrastructure, Cadent is working towards its sustainability objectives of providing easier warmth, fairer opportunities and a greener society in line with its sustainability strategy. Cadent has an MSCI Sustainability Rating of AAA.

Cadent

About

Why we invested

Sustainable Development Goals (SDGs)

Outcomes

Barrow OFTO

East Anglia One OFTO (‘EA1’)

Beatrice OFTO