Shell sells stake in Queensland Curtis LNG project for $2.5 billion

Shell announced the sale of a minority interest in inthe Queensland Curtis LNG (QCLNG) Common Facilities infrastructure in Australia to Global Infrastructure Partners for $2.5 billion.

QGC Common Facilities Company Pty Ltd, a wholly-owned subsidiary of Shell, has agreed to the sale of a 26.25 per cent interest in QCLNG Common Facilities to Global Infrastructure Partners Australia.

The Common Facilities are 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 majority owner and operator of the Common Facilities.

The deal is subject to regulatory approval in Australia and customary conditions. It is expected to complete in the first half of 2021.

In a statement, Shell that this deal is consistent with it'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.

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.