TotalEnergies in Gladstone LNG deal with GIP

France’s TotalEnergies said it has completed a transaction with a unit of Global Infrastructure Partners in relation to the downstream facilities of the Gladstone LNG project in Australia.

Total GLNG Australia, which has a stake in the Santos-led plant on Curtis Island, completed the transaction worth more than $750 million with GIP Australia.

As part of this transaction effective January 1, 2021, GIP would receive a throughput-based tolling fee calculated on TGA’s share of gas processed through the downstream facilities over a period of 15 years, TotalEnergies said in a statement.

The unit of TotalEnergies retains full control and ownership of its 27.5% interest in the Gladstone LNG downstream joint venture.

“We have worked closely with GIP to achieve this infrastructure transaction and are happy of this first collaboration with such an experienced infrastructure partner,” Jean-Pierre Sbraire, chief financial officer at TotalEnergies, said.

“This monetization of infrastructure assets contributes to focusing further TotalEnergies’ capital on core producing assets and fully reflects TotalEnergies’ active portfolio management”, he said.

The integrated LNG project consists of producing natural gas from the Fairview, Arcadia, Roma and Scotia fields, located in the Bowen-Surat Basin in Queensland, Australia.

Also, the project includes transporting the gas over approximately 400 kilometers to a gas liquefaction plant in the industrial port of Gladstone, northeast of Brisbane, on the eastern coast of Australia.

The Gladstone LNG plant consists of two trains with a total nameplate capacity in excess of 7.8 million tons per year.

The downstream facilities mainly comprise the gas transportation system and the two-train gas liquefaction plant. The project has been exporting LNG since 2015.

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