News wire — Shell on Monday announced that it would sell its minority interest in QCLNG Common Facilities Global Infrastructure Partners Australia to Global Infrastructure Partners.
In a statement, the international oil firm said it would sell its 26.25% interest for $2.5 billion.
QGC Common Facilities Company Pty Ltd is a wholly-owned subsidiary of Shell with a 26.25% interest in the Queensland Curtis LNG, QCLNG 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. 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 Common Facilities are currently 100% owned by Shell and include LNG storage tanks, jetties, and operations infrastructure that service QCLNG’s LNG trains.
Upon completion of the transaction, Shell said it will remain majority owner and operator of the Common Facilities.
“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, according to Shell, is subject to regulatory approval in Australia and customary conditions.
It is expected to complete in the first half of 2021.