Oil and gas company BG Group has finally closed a £1.2 billion deal for the sale of interests in the Queensland Curtis liquid natural gas (LNG) project in Australia.
The deal with Chinese state oil firm China National Offshore Oil Corporation (CNOOC) was originally signed in May this year, and also includes a separate 20-year agreement to supply CNOOC with an additional 5 million tonnes of LNG a year.
BG Group chief executive Chris Finlayson said the deal signalled the start of a new chapter in the company’s partnership with CNOOC, as the two began commissioning of the world’s first coal seam gas to LNG project ahead of first commercial cargo in 2014.
“Our relationship with CNOOC has grown as they increase their investment in our Queensland Curtis LNG project and BG Group becomes the largest supplier of LNG to the world’s fastest growing energy market,” said Mr Finlayson.
Total funds from the deal improved the company’s gearing by five percentage points, he added.
BG Group’s Australian business, QGC Pty Limited, remains operator and retains majority ownership of the Queensland Curtis LNG project.
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