Shell sells $730m stake in Norway gas transport JV
Shell has agreed to sell its interests in natural gas transport infrastructure joint venture Gassled to Infragas Norge for about $730 million, based on current exchange rates.
Gassled is Norway’s integrated gas transportation system and processing facilities, which transports most of the gas production on the Norwegian Continental Shelf (NCS) to consumers on the European continent and in the United Kingdom.
“This sale is a further step in our strategy of exiting non-strategic assets and focusing on major growth projects,” said David Loughman managing director for Shell. “Shell’s growth strategy for Norway is unchanged.”
The agreement with Infragas Norge AS relates to Shell’s 5.0% interest in Gassled JV and associated interests of 3.3% in Dunkerque terminal and 2.5% in Zeepipe terminal.
Gassled is a joint venture established in 2003.
It provides transportation services on an open access basis to producers on the Norwegian Continental Shelf.
Licence partners in Gassled include Petoro, Statoil, Njord Gas Infrastructure , Total, Norsea Gas, ConocoPhillips, Eni, Dong, GDF Suez and RWE Dea Norge.
Infragas Norge is an indirect wholly-owned subsidiary of the Public Sector Pension Investment Board – one of Canada’s largest pension investment managers, with over Canadian $58 billion of assets under management as of March 31.
The transaction is subject to approval by the relevant Norwegian authorities and to consents by the Gassled JV partners.
The parties’ intention is to close in the fourth quarter of 2011, they said.
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