Business

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




'Lawless life': Gladstone body builder rips off servo

Dylan Todd / Facebook

GLADSTONE body builder drives off with fuel.

'Fast tracked': $9.8m project to bring Gladstone jobs

AN ENERGY HIT: Glenn Butcher MP has announced a $9.8 million upgrade to the power supply infrastructure.

State Government fast tracks another project in Gladstone

'Tough times': Facebook project gives Gladstone locals gifts

ACT OF KINDNESS: Dan Gunter felt like it was his lucky day when he picked up one of the gifts from Gladstone Goodness Project while at Calliope cafe The Empty Plate.

GROUP with 'annonynous' admin to bring hope to Gladstone region.

Latest deals and offers

Taylor Swift dismissed from jury duty

Taylor Swift was dismissed from jury duty in a sexual assault case

Zumbo's Willy Wonka hat trick trips up Queensland brickie

Adriano Zumbo and Rachel Khoo with Zumbo's floating dessert in a scene from Zumbo's Just Desserts.

NOOSA'S Michael Basset asked to recreate floating chocolate dish.

John Lennon's killer denied parole for 9th time

John Lennon

John Lennon's killer has been denied parole for the ninth time.

Mexican band takes aim at Trump

Disguised as unhinged narcotraficantes, the Mexican-American agitators of BRUJERIA captured the mood of the citys minorities with the bands infamous and widely banned 1993 debut, Matando Geros (Killing White People), quickly becoming the Spanish-language counterparts to early grindcore masters TERRORIZER and NAPALM DEATH.  Photo Contributed

'Satanic drug lord' band challenges Trump

Willy Wonka star, Gene Wilder dead at 83

A still of Gene Wilder in the 1971 film Willy Wonka and the Chocolate Factory

Social media has already lit up with tributes to the late actor.

Gladstone couple's spontaneous Gympie Muster wedding

Craig Oglesby and Brenda Strong celebrate their wedding at the Gympie Muster with punters in front of the Main Stage.

The Gympie Music Muster was the perfect place for a wedding.

Bunnings starts demolition of historic foundry buildings

Demolition works have started at the Toowoomba Foundry.

Lane and footpath closures will take place

Australia's most expensive balcony and it hasn't been built

Viridian Noosa.

How Noosa millionares' squabble could affect body corporates

Palm Lake Resort set to move in to Coast with 276 villas

Palm Lake Group has been given approval by Sunshine Coast Council to build a 276-villa over 50s resort and 120-bed aged care facility at the intersection of Caloundra Rd and Caloundra Mooloolaba Rd in Little Mountain.

New facility planned for Caloundra Rd

Warning for unit investors with price plummet prediction

The warning signs are flashing for one real estate sector in 2017 despite others performing the best they have in years and it's not going to be pretty.

One real estate sector looks set for a rocky 2017

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF