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Shell pockets $3.2 billion in sell-off of Gladstone gas infrastructure

Business

Shell QGC has offloaded a 26.25 per cent stake in its Curtis Island LNG common facilities to Global Infrastructure Partners Australia for $US2.5 billion ($A3.29 billion).

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It follows $US9 billion writedowns of its Australian gas assets earlier this year.

It said the common facilities were 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 Shell’s portfolio,” Shell said.

“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.

“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.

GIP has infrastructure equity funds of about $US54 billion.

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