Shell Picks up LNG Assets from Repsol

In a move to ease its debt burden, Spanish based Repsol has sold liquefied natural gas assets to Royal Dutch Shell.

The $6.7 billion transaction includes LNG assets based in Bay of Biscay, Trinidad and Tobago, and Peru. The deal excludes Canaport, the Canadian LNG import and regasification terminal which Repsol has also put up for sale.

Shell, the world’s largest LNG supplier, will pay US $4.4 billion in cash and will also assume US$2.3- billion of financial obligations and debt as part of the purchase.

“Shell’s world-wide LNG supply position and customer base means we are uniquely positioned to add value to Repsol’s LNG portfolio, including through Shell’s trading capabilities,” said Chief Executive Officer Peter Voser.

Prospective interested parties in the LNG assets reportedly included including Sinopec, Gazprom, GDF Suez and GAIL.