Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

BG Group agrees sale of Australian pipeline for US$5 billion

10/12/2014 by Sharon Shahzad

W1siziisijiwmtqvmtivmtavmtmvntavndcvody5l183otyyodcxm19iz3bpcgvsaw5llmpwzyjdlfsiccisinrodw1iiiwinjawedqwmfx1mdazzsjdxq

BG Group plc, a world leader in exploration and LNG, today announced it has agreed to sell its wholly-owned subsidiary QCLNG Pipeline Pty Ltd to APA Group (ASX: APA), Australia's largest gas infrastructure business, for approximately US$5.0 billion.

QCLNG Pipeline Pty Ltd owns a 543 kilometre, large-diameter underground pipeline network linking BG Group's natural gas fields in southern Queensland to a two-train liquefied natural gas (LNG) export facility at Gladstone on Australia's east coast. The sale of this non-core infrastructure is consistent with BG Group's strategy of actively managing its global asset portfolio.

The pipeline was constructed between 2011 and 2014 and has a current book value of US$1.6 billion. Tariffs payable on the pipeline are set to provide a fixed rate of return on the asset base with the primary tariff components escalating annually with US inflation indices. For the year ended 31 December 2016, the pipeline tariff is expected to deliver to APA Group EBITDA of approximately US$390 million.

The sale is conditional on the start of commercial LNG deliveries (post commissioning) from the QCLNG export facility at Gladstone and on partner consent. BG Group and its partners have firm capacity rights in the pipeline for 20 years, with options to extend.

On completion, expected in the first half of 2015, the transaction is expected to result in a post-tax profit of approximately US$2.7 billion. The profit on disposal will be partly offset by a post-tax impairment of BG Group's remaining QCLNG assets, expected to be around US$2 billion, following categorisation of QCLNG Pipeline Pty Ltd as held for sale in the fourth quarter of 2014.

The Group expects the sale proceeds will be used to reduce net debt and to fund future growth investment.

Andrew Gould, interim Executive Chairman of BG Group, commented: "We are pleased to have entered into an agreement for the sale of this high-quality infrastructure with a bidder the calibre of APA Group.

This article has been extracted from http://www.youroilandgasnews.com, please click on this link to read the article in full http://www.youroilandgasnews.com/bg+group+agrees+sale+of+australian+pipeline+for+us%245+billion_109713.html

Montash is a multi-award winning, global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Energy Technology, Demand IT and Business Engagement, Digital and E-commerce, Leadership Talent, Infrastructure and Service Delivery, Project and Programme Delivery.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdivmtuvmtyvntivmjuvnzkwl2n5ymvyigf0dgfja3muanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

UK threatened by serious cyber attacks every ...

2017-02-15 16:00:00 +0000

The security of the UK has been threatened by 188 serious cyber attacks in the last three months, a government security chief has said. National Cyber Security Centre (NCSC) Chief Executive Ciaran Martin told The Sunday Times that national security was put at risk by many of these attacks. Martin was speaking ahead of the official opening of the NCSC, which has been set up to protect critical services in the UK from such attacks and improve underlying i...

W1siziisijiwmtcvmdivmdgvmtavmzcvmzkvnjkyl0n5ymvyifnly3vyaxr5lmpwzyjdlfsiccisinrodw1iiiwimzgwedewmcmixv0

British cyber security workforce rises 163%

2017-02-08 10:00:00 +0000

Data from the UK has shown that the cyber security workforce has grown considerably over the past five years. According to a new report from cyber skills promotion network Tech Partnership, there are now 58,000 more workers in this industry – a rise of 163 per cent. It shows the growing importance of these professionals, with firms across a vast range of industries turning to cyber security specialists to safeguard their data. To collate the report, the...