The Kuwait Investment Authority (KIA) will buy oil and gas pipeline firm North Sea Midstream Partners (NSMP) from private equity firm ArcLight Capital.

London-based Wren House, the infrastructure investment arm of the Kuwaiti sovereign wealth fund has signed the $1.7bn deal, according to a Reuters report.

Wren House reportedly fended off bids from private equity majors JP Morgan, Blackstone and KKR to buy Aberdeen-based NSMP.

The US-based Sovereign Wealth Fund Institute ranks KIA as one of the world’s top 10 sovereign wealth funds, managing $592bn.

Wren House said the transaction was expected to be completed this year, subject to regulatory approvals.

NSMP owns a 67 per cent interest in the SIRGE pipeline that transports natural gas from the West of Shetlands basin and a 100 per cent interest in the FUKA pipeline which transports gas from the SIRGE pipeline and various fields in the northern and central North Sea.