Shell inks US$2.5b Australian LNG stake sale to GIP
[BRISBANE] Royal Dutch Shell Plc agreed to sell a minority stake in a liquefied natural gas export project in Australia to Global Infrastructure Partners for US$2.5 billion.
The oil major will sell a 26.25 per cent interest in the Queensland Curtis LNG Common Facilities in a deal that is expected to be completed in the first half of 2021, the company said a statement on Monday. The common facilities are currently completely owned by Shell and include LNG storage tanks, jetties and infrastructure that service the venture.
A deal would reduce the oil giant's exposure to the turbulent market, while still remaining majority owner and operator in one of Australia's biggest LNG facilities. China's CNOOC Ltd. has a 50 per cent equity stake in one of the plant's production trains, while Tokyo Gas Co holds a 2.5 per cent equity in another one, according to Shell's website.
"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 in the statement.
It also comes after the Australian government has touted the gas industry as a key engine for nationwide growth out of this year's recession, even as energy prices have fallen and other major projects have been beset by holdups.
GIP is an infrastructure-focused fund manager with US$71 billion in assets, according to its website. It led a consortium comprising five other investment funds in a purchase of a US$10 billion stake in Abu Dhabi National Oil Co's natural gas pipelines in June.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply