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.