BG Completes Sale of QCLNG Pipeline

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

In a statement released Wednesday the company said the transaction has resulted in gross proceeds of around $4.6 billion. The deal was first announced late last year. 

“The proceeds reflect indexation movements to the long term tariff payable since the transaction announcement on 10 December 2014, and are 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 annualised basis, the full pipeline tariff is approximately $360 million,” BG Group said.

The company plans to use the sale proceeds to reduce net debt and to fund future growth investment.