Dutch oil and gas firm Shell has closed the divestiture of the first phase of its Hong Kong and Macau liquefied petroleum gas (LPG) marketing business to DCC LPG, in a transaction valued at around $150m.
The agreement related to the sale of Shell’s entire LPG business in Hong Kong and Macau was signed in April last year.
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Under the deal, Shell branded LPG products will continue to be available in the regions through a long-term brand licence agreement with DCC LPG.
At the time of signing the agreement, Shell Downstream director John Abbott said: “This sale supports Shell’s strategic commitment to focus downstream activities on areas where we can be most competitive.
“This is one of the last of our wholly owned LPG businesses and this sale is another step in Shell’s ongoing portfolio optimisation strategy to deliver $30bn of divestments between 2016 and 2018.”
The second phase of the transaction includes the LPG plant in Hong Kong.
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By GlobalDataShell continues to operate the plant and the sale is subject to conditions, including regulatory approvals.
According to the company, the sale will not affect its other businesses.
The company intends to continue operations in Hong Kong and Macau.
In a separate development, Shell terminated its agreement with Dansk Olieselskab (DO) signed in September 2016 regarding the sale of A/S Dansk Shell.
The sale, which includes the Fredericia refinery and local trading and supply activities, will not be completed, according to the company.
