Shell sells Curtis LNG interest for $3.3 billion
The Shell-operated QGC will now be part-owned by another company following an agreement to sell a share in the operation.
QGC Common Facilities Company Pty Ltd, a wholly-owned subsidiary of Shell, on Monday announced it agreed to the sale of a 26.25 per cent interest in the Queensland Curtis LNG Common Facilities to Global Infrastructure Partners Australia for US$2.5 billion (about $3.3 billion AUD).
The Common Facilities is currently 100 per cent owned by Shell and includes LNG storage tanks, jetties and operations infrastructure that service QCLNG’s LNG trains.
Shell will remain majority owner and operator of these facilities.
In a statement, Shell said this decision was consistent with its strategy of selling non-core assets in order to further high-grade and simplify Shell’s portfolio.
“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,” the statement said.
“Due to the advantages it offers as a complement to renewable energy and as the cleanest burning hydrocarbon, natural gas is a core component of Shell’s strategy to provide more and cleaner energy solutions.
“Global LNG demand is expected to outpace total demand for energy and the QCLNG venture is crucial in helping Shell meet the world’s growing energy needs.”
The transaction is subject to regulatory approval in Australia and customary conditions. It is expected to complete in the first half of 2021.