BG Group completes sale of QCLNG pipeline
OREANDA-NEWS. June 05, 2015. BG Group plc (LSE: BG.L), a world leader in exploration and LNG, today announces it has completed the sale of its wholly-owned 543 kilometre pipeline network linking natural gas fields and the Queensland Curtis Liquefied Natural Gas (QCLNG) export facility to APA Group (ASX: APA).
This transaction has resulted in gross proceeds for BG Group of around US\\$4.6 billion. 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 US\\$360 million.
The sale proceeds will be used to reduce net debt and to fund future growth investment.
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