Sovereign wealth fund GIC and asset manager BlackRock are buying energy firm Kellas Midstream from a private equity company for an undisclosed amount.

The deal is expected to close early next year.

Kellas Midstream owns and operates key gas infrastructure in the North Sea.

Its assets include a gas transport and processing system, a subsea pipeline and a greenfield project building infrastructure to develop a large gas field in the North Sea.

GIC and BlackRock, the world's biggest asset manager, are buying the company from Antin Infrastructure Partners.

A growing number of institutional investors are seeking exposure to energy and power investments, said Mr Mark Florian, group head of BlackRock's global energy and power infrastructure funds.

"Within the sector, energy from gas is viewed as a necessary component of the energy transition as we move towards a lower carbon economy," he added.

Mr Ang Eng Seng, GIC's chief investment officer for infrastructure, said the sovereign wealth fund will be a long-term investor in Kellas Midstream.