Shell has agreed to divest a minority stake in Queensland Curtis LNG (QCLNG) Common Facilities in Australia for $2.5bn as part of its efforts to shed non-core assets to simplify its portfolio.
QGC Common Facilities Company, a wholly owned subsidiary of Shell, will sell 26.25% stake in the QCLNG Common Facilities to the local affiliate of Global Infrastructure Partners.
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The Common Facilities include LNG storage tanks, jetties and operations infrastructure that service QCLNG’s LNG trains.
The transaction is expected to complete in the first half of next year, subject to regulatory approval in Australia and customary closing conditions.
Once the transaction completes, Shell will retain a majority stake in the assets and will continue to operate the facilities.
There will be no change in the ownership stake for CNOOC and Tokyo Gas, which are minority stakeholders in QCLNG Common Facilities.
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By GlobalDataIn a statement, Shell said: “This decision is consistent with Shell’s strategy of selling non-core assets in order to further high-grade and simplify Shell’s 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.”
According to Reuters, the company aims to raise $4bn a year through asset sales. The latest deal, which comes after the divestment of Martinez refinery and Appalachia shale gas assets, puts the company on target for this year.
