Shell sells minority QCLNG stake for $2.5 billion

Shell said on Monday it has agreed to sell a 26.25% stake in its Queensland Curtis LNG export plant to Global Infrastructure Partners Australia for $2.5 billion.

The Hague-based energy giant completed the sale via its unit QGC Common Facilities Company that operated the 8.5 mtpa QCLNG plant on Curtis Island.

Global Infrastructure Partners Australia is an affiliate of the US-based independent investment fund Global Infrastructure Partners.

Shell currently owns 100% of the QCLNG common facilities that include storage tanks, jetties and operations infrastructure that service the plant’s two trains.

Upon completion of the transaction, Shell will remain majority owner and operator of the facilities.

Furthermore, Shell also has partners in the plant. China’s CNOOC owns 50% equity in Train 1 and Japan’s Tokyo Gas has 2.5% equity in Train 2.

“This decision is consistent with Shell’s strategy of selling non-core assets in order to further high-grade and simplify Shell’s portfolio,” Shell said.

“The sale will contribute to Shell’s expected divestment proceeds, without impact on people or the operations of the QCLNG venture, and aligns Shell’s interest in the common facilities with its 73.75% interest in the overall QCLNG venture,” it said.

The transaction is subject to regulatory approval in Australia and customary conditions.

Additionally, Shell expects to complete the deal in the first half of 2021.

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