By Andrew Peaple
LONDON-- BG Group PLC said Tuesday it had agreed to sell wholly
owned subsidiary QCLNG Pipeline Pty., which owns the pipeline
running from two of its natural-gas fields in Australia, to gas
infrastructure company APA Group for $5 billion.
The disposal is part of the U.K. oil and gas company's plans to
sell off noncore assets, and it had previously said it would look
to sell the pipeline before year-end. The company, once a darling
of the U.K. stock market, has struggled in recent times with
stagnating production and cost overruns on big projects.
BG said it expected to complete the deal to sell the
543-kilometer pipeline network, which links BG's gas fields in
southern Queensland to export facilities on Australia's east coast,
in the first half of next year.
"The sale of the QCLNG pipeline is in line with our strategy to
focus on BG Group's core areas of oil and gas exploration and
production and liquefied natural gas," said Andrew Gould, BG's
interim executive chairman, in a statement.
Write to Andrew Peaple at andrew.peaple@wsj.com
Access Investor Kit for APA Group
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=AU000000APA1
Access Investor Kit for BG Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0008762899
Access Investor Kit for BG Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0554342032
Subscribe to WSJ: http://online.wsj.com?mod=djnwires