Shell to divest stake worth $2.5 billion in Queensland Curtis LNG facilities

Royal Dutch Shell has made significant progress towards its annual divestment target with the sale of a 26.25% stake in its Queensland Curtis LNG (QCLNG) facilities to Global Infrastructure Partners Australia.

The oil and gas giant will receive US$2.5 billion for the stake in QCLNG, putting it on course to meet its goal of raising $4 billion a year through asset sales. Shell has already divested its Martinez refinery and Appalachia shale gas assets in 2020.

“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 company said in a statement.

The QCLNG plant is majority owned by Shell, with minority stakes owned by China National Offshore Oil Corp and Tokyo Gas Co. Global Infrastructure Partners’ investors expressed interest in the stake because the asset has a guaranteed earnings stream for 15 years.

Shell’s remaining 73.75% stake in the common facilities aligns with its ownership in the overall QCLNG venture, which produces liquefied natural gas at an 8.5 million tonnes a year plant for export mostly to Asian markets, including China and Japan.