A wholly owned subsidiary of Shell has agreed to sell its 26.25% interest in the Queensland Curtis LNG (QCLNG) Common Facilities to infrastructure investor Global Infrastructure Partners Australia for US$2.5Bn
The QCLNG Common Facilities are currently 100% owned by Shell subsidiary QGC Common Facilities Company Pty Ltd, including two 140,000-m3 LNG storage tanks, jetties and operations infrastructure that service the production facility’s LNG trains. Upon completion of the transaction, Shell will remain majority owner and operator of the Common Facilities.
The QCLNG project encompasses an 8.5-mta LNG plant on Curtis Island near Gladstone, and natural gas operations, which include wells, compression stations and processing plants in Queensland’s Surat Basin. Shell is the operator and majority interest holder in the QGC Joint Venture. Its partners in the LNG plant on Curtis Island are CNOOC (50% equity in Train 1) and Tokyo Gas (2.5% equity in Train 2). It supplies LNG for Australian domestic use and export.
In a press statement, Shell said the sale is consistent with its 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, and aligns Shell’s interest in the Common Facilities with its 73.75% interest in the overall QCLNG venture.
The Dutch-Anglo energy company said that 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.
The transaction is subject to regulatory approval in Australia and customary conditions. It is expected to complete in H1 2021.
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