BG Group agrees to sell QCLNG pipeline

BG Group is set to sell its QCLNG pipeline for $5 billion. 

BG Group has agreed to sell its wholly-owned subsidiary QCLNG Pipeline Pty Ltd to APA Group, Australia's largest gas infrastructure business, for about US$5 billion.

QCLNG Pipeline Pty Ltd owns the 543km, large-diameter underground pipeline network linking BG Group's natural gas fields in southern Queensland to the QCLNG plant on Curtis Island, Gladstone.

The pipeline was constructed between 2011 and 2014 and has a current book value of US$1.6 billion.

The sale is conditional on the start of commercial LNG deliveries from the QCLNG export facility and on partner consent.

On completion, expected in the first half of 2015, the transaction is expected to result in a post-tax profit of about US$2.7 billion.

BG Group plans to use the sale proceeds to reduce net debt and fund future growth investment.

Interim executive chairman Andrew Gould said the sale of the QCLNG pipeline was in line with the company's strategy to focus on its core areas of oil and gas exploration and production, and LNG.

"The timing reflects QCLNG's advanced stage of development; we are now on the verge of delivering the world's first large-scale project using natural gas from coal seams as a feedstock for LNG," Mr Gould said.

BG Group is reviewing its reference conditions, long-term price assumptions and business plans in light of recent movements in commodity prices, particularly the drop in the oil price. 

Topics:  bg group curtis island gas lng qclng

NEW: 10 best places to rent in Gladstone between $100-$200

House 8 Gladstone

Here's a list of some of Gladstone's best places to rent under $200

Gladstone's best teacher revealed

CLASS FAVOURITE: Shelley Slade, head of special education services at Gladstone State High School, was named by Observer readers as Gladstone's favourite teacher. Pictured with students Kody Walsh, 13, and Phoebie Walker-Woodrow, 15.

The Observer put the call out for Gladstone's best teacher

60-yo man taken to hospital after nasty snake bite surprise

A Boyne Island man in his 60s was taken to hospital early this morning after suffering a snake bite at his Katandra St home.

Paramedics responded to the call at about 4am.

Local Partners

January Jones: Take time away from your phone

January Jones needs time away from her phone

Mel C won't return to Spice Girls for daughter

MEL C is adamant she won't reunite with the Spice Girls

60's British rock legends to return to Australia

The Troggs will play a string of dates across Australia in November.  Photo Contributed

We all remember 'Wild Thing' and now you can hear it live.

Depp jumps ship from agency of 25 years

Johnny Depp has signed to CAA after 25 years with the United

Orlando Bloom 'buried' Katy Perry in birthday flowers

Orlando Bloom "buried" Katy Perry in flowers for her birthday

MacBook fires up: New "touchbar" will include emojis

COULD emojis help the MacBook again deliver a laptop revolution?

Investors eye new local estate with dirt cheap property

A new estate, Aquatic Vista, has opened at Agnes Water.

BUYERS to go crazy for an entire new estate put on the market.

Want to own one of Australia's best restaurants?

TOP GONG: Mooloolaba Spice Bar has been named in TripAdvisor's Top 10 Australian restaurants for 2016.

Here's your chance to pick up one of the Coast's favourite eateries

OPINION: Banks fear Gladstone future: Councillor

REGIONAL Queensland deserves a helping hand on housing.

Bank reclaims Goondoon St complex plan, places on the market

Multi-million dollar development plan up for sale.

MULTI-MILLION dollar plan for Goondoon St complex on the market.

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Ready to SELL your property?

Post Your Ad Here!