Shell is offloading a 26.5 per cent interest in the Queensland Curtis LNG (QCLNG) common facilities to Global Infrastructure Partners Australia for $US2.5 billion ($3.25 billion).
The facilities, currently 100 per cent owned by Shell, include LNG storage tanks, jetties and operations infrastructure that service QCLNG’s LNG trains.
Shell, which announced the deal in late December, will remain majority owner and operator of the facilities once the transaction has been completed.
“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 stated.
“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 per cent interest in the overall QCLNG venture.”
Shell expects to complete the deal in the first half of 2021, once it has received regulatory approval in Australia and met customary conditions.
The transaction will have no impact on the ownership structure of QGC or QCLNG. Shell will remain the operator and majority interest holder in QGC, together with CNOOC (50 per cent equity in Train 1) and Tokyo Gas (2.5 per cent equity in Train 2).
Shell 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.