Oil and Gas News

Shell offsets part of Queensland Curtis ownership

Shell has confirmed that it has completed the sale of a 26.25 per cent interest in the Queensland Curtis liquefied natural gas (QCLNG) common facilities to Global Infrastructure Partners Australia.

The company’s subsidiary QGC Common Facilities sold the interest for $US2.5 billion ($3.25 billion), following the receipt of regulatory approval.

The sale was announced on December 21, 2020, and is consistent with Shell’s strategy of selling non-core assets to further high-grade and simplify its portfolio.

The sale will contribute to Shell’s expected divestment proceeds, without impact on people or the operations of the QCLNG venture.

Shell has advised that the common facilities include LNG storage tanks, jetties and operations infrastructure that service QCLNG’s LNG trains.

Following the completion of the transaction, Shell now remains majority owner and operator of the common facilities, with the transaction aligning Shell’s interest in the common facilities with its 73.75 per cent interest in the overall QCLNG venture.

In January this year the company stated that natural gas is a core component of its strategy to provide more and cleaner energy solutions, due to the advantages it offers as a complement to renewable energy and as the cleanest burning hydrocarbon.

The company expects global LNG demand to outpace total demand for energy and regards the QCLNG venture as crucial in helping it meet the world’s energy needs.

Global Infrastructure Partners Australia is an affiliate of Global Infrastructure Partners, an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses.