BG Group completes sale of QCLNG pipeline
READING, United Kingdom -- 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.
This transaction has resulted in gross proceeds for BG Group of around $4.6 billion. The proceeds reflect indexation movements to the long-term tariff payable since the transaction announcement on Dec. 10, 2014, and are in line with the $4.5 billion to $5 billion range provided in first-quarter 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 U.S. inflation indices. On an annualized basis, the full pipeline tariff is approximately $360 million.
The sale proceeds will be used to reduce net debt and to fund future growth investment, BG Group said.
