Shell Weighs Sale of $2B-plus Share in Queensland LNG

Sonali Paul and Paulina Duran
Wednesday, June 3, 2020

Royal Dutch Shell is considering raising more than $2 billion from the sale of a stake in the common facilities at its Queensland Curtis LNG plant in Australia, according to a sale flyer reviewed by Reuters.

"Royal Dutch Shell plc is considering a sale of a 26.25% interest in the Queensland Curtis LNG (QCLNG) Common Facilities - a multibillion-dollar investment opportunity," the sale flyer said.

The sale process is being run by Rothschild & Co and is due to be completed in 2020, the document showed.

Shell declined to comment on what it called market speculation. Rothschild also declined to comment.

The facilities in which it might sell a stake could fetch between $2 billion and $3 billion, two people familiar with the sale process said.

Flyers on a possible sale went out after infrastructure investors approached Shell expressing interest in the assets, said one of the people familiar with the process.

The QCLNG plant is majority owned by Shell, with minority stakes owned by China National Offshore Oil Corp and Tokyo Gas Co.

The plant has so-called common facilities which Shell wholly owns, including two LNG storage tanks, water, fuel and power generation systems, a tanker-loading jetty and terminals.

The Shell facilities are being offered to infrastructure investors as they offer a U.S-dollar denominated, inflation-linked usage fee from CNOOC and Tokyo Gas over about 15 years, regardless of the plant's throughput.

Shell acquired its stake in QCLNG and the facilities with its $53 billion takeover of BG Group in 2016.

Shell cut its dividend in April for the first time since World War Two to save cash amid a historic oil demand slump. It aims to sell more than $10 billion of assets in 2019-2020 depending on market conditions.

The potential sale follows Shell's sanctioning last month of a gas project in Queensland and its renewable energy push in Australia after the takeover of ERM Power last year.

(Reporting by Sonali Paul in Melbourne and Paulina Duran in Sydney; Additional reporting by Ron Bousso in London; Editing by Louise Heavens and Christian Schmollinger)

Categories: LNG Australia/NZ

Related Stories

Woodside to Shed Some Trinidad and Tobago Assets for $206M

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Pharos Energy Extends Licenses for Two Vietnamese Gas Fields

Offshore Service Vessels: What’s in Store in 2025

INEOS Picks Up CNOOC’s US Assets in $2B Deal

Sunda Energy, Timor-Leste Gov Plan Accelerated Chuditch Gas Development

RINA to Conduct Pre-FEED Study for Petronas’ CCS Project in Malaysia

OPEC+ Passes on Oil Output Increase, Weighs the "Trump Effect"

Sembcorp Signs 10-Year LNG Supply Contract with Chevron

Current News

Eneos Scoops Jack-Up Drilling Contract Offshore Vietnam

Vietnam to Open Bidding Round for Three Offshore Oil Blocks

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Mitsui’s STATS Lands Malaysian Pipeline Isolation Job

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com