The Hague-based oil and LNG major Shell has agreed to sell a minority stake in a QCLNG unit for a consideration of $2.5 billion.
Shell said on Monday its QGC Common Facilities has agreed to sell 26.25 per cent in the Queensland Curtis LNG Common Facilities to Global Infrastructure Partners Australia.
The Common Facilities are currently 100 per cent owned by Shell and include LNG storage tanks, jetties and operations infrastructure that service QCLNG’s LNG trains.
Upon completion of the transaction, Shell will remain the majority owner and operator of the Common Facilities.
This decision is consistent with Shell’s strategy of selling non-core assets in order 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, and aligns Shell’s interest in the Common Facilities with its 73.75 per cent interest in the overall QCLNG venture.
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.
Shell further clarified that the transaction with Global Infrastructure Partners Australia, a unit of Global Infrastructure Partners, has no impact on QGC and QCLNG ownership structure.
Shell remains 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), which also remains unchanged following this transaction.
The two trains at the QCLNG plant near Queensland have a total production capacity of 8.5 million tons of LNG.