BG Group Sells QCLNG Pipeline

BG Group plc announced it has completed the sale of its wholly-owned 543 kilometer pipeline network linking natural gas fields and the Queensland Curtis Liquefied Natural Gas (QCLNG) export facility to APA Group. 

 

This transaction has resulted in gross proceeds for BG Group (BRGXF) of around $4.6 billion, reflecting indexation movements to the long term tariff payable since the transaction announcement on December 10, 2014, and in line with the $4.5 to $5 billion range provided in Q1 2015. 

 

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. On an annualized basis, the full pipeline tariff is approximately $360 million. 

 

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