Sources say that BP is looking for buyers to buy its US Natural Gas Pipeline System stake.

Four people familiar with the matter have confirmed that BP is looking for buyers to take a stake in their U.S. Natural Gas Pipeline Network.

Two people have said that the British energy company may be able to raise $3 billion through the sale. One of them added that BP could sell as much as a 49 percent stake in its business.

Two other people confirmed that the sale is part of BP's CEO Murray Auchincloss’s efforts to reduce the debt levels at the company, which have risen in the last year.

BP refused to comment. The four individuals spoke under the condition of anonymity, as they had not been authorized to speak in public.

Investors are putting pressure on BP to improve its performance and profitability, as they worry about the company's strategy for energy transition.

The company plans to sell its stakes in Lightsource BP Solar, its U.S. offshore wind division and its U.S. Onshore wind business. Auchincloss will present the company's new strategy in February. He is looking to reduce debt and increase cash flow.

BP's third quarter results revealed that net debt increased to $24.3 billion by the end of September from $22.3 billion a few months earlier due to asset sales being lower than expected.

Shares of the company have fallen by more than 18% in value this year. This is a much worse performance than its competitors. Shell shares have fallen 3% in value year-to date, while ExxonMobil has risen 14%, and Chevron has nearly 7% more.

As production increases and new pipelines are not permitted, existing assets become more valuable.

According to its website, BP has around 1,500 miles (2,414 km) worth of pipelines, which transport 1.1 millions barrels of fuels, natural gas, and crude oil per day throughout the United States. Reporting by Sarah McFarlane and Ron Bousso. Anousha Sakoui and Kirby Donovan edited the article.

(source: Reuters)