Shell Completes Sale of Queensland Curtis LNG Stake

The sale of the minority stake is part of its larger 2021 program to raise an average of $4 billion annually by shedding noncore holdings.

qgc-lng-plant queensland
The QGC LNG plant on Curtis Island near Gladstone.

Shell has completed the sale of its 26.25% interest in the Queensland Curtis LNG (QCLNG) Common Facilities to Global Infrastructure Partners Australia for $2.5 billion. The transaction aligns Shell’s interest in the Common Facilities with its 73.75% interest in the overall QCLNG venture.

The divestment is part of Shell’s planned asset sale strategy going forward where it hopes to raise an average of $4 billion annually by shedding noncore holdings.

QCLNG Common Facilities include LNG storage tanks, jetties, and other operations infrastructure that service QCLNG’s LNG trains.

The Common Facilities sale was first announced on 21 December 2020, and according to Shell is consistent with its strategy of high-grading and simplifying its portfolio.

Shell said the transaction has no impact on the ownership structure of the QGC venture or QCLNG. Shell remains the operator and majority interest holder in QGC, together with CNOOC (50% equity in Train 1) and Tokyo Gas (2.5% equity in Train 2), which also remains unchanged following the transaction.

Shell has been active on the divestment front during the first quarter of 2021. Earlier this month, the operator agreed to sell its upstream assets in Egypt’s western desert for a base consideration of $646 million, plus additional payments of up to $280 million.

Last month, the company agreed to sell its Kaybob Duvernay shale holdings in Alberta for $707 million to Crescent Point Energy. In January, it completed the sale of its 30% stake in OML 17, a license in the Eastern Niger Delta, to TNOG Oil and Gas for $533 million.