Royal Dutch Shell plc RDS continues to
expand its industry leadership in Liquefied Natural Gas ("LNG"), today agreeing
to acquire part of Repsol S.A's LNG portfolio outside of North
America, including supply positions in Peru and Trinidad & Tobago, for a cash
consideration of $4.4 billion. Shell will also assume and consolidate balance
sheet liabilities predominantly reflecting leases for LNG ship charters of
currently $1.8 billion. The balance sheet impacts are subject to final
assessment prior to completion of the transaction.
"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. "By optimising
the combined portfolios we will increase our ability to bring LNG to areas that
need it the most, adding value for Shell, our partners and our customers."
The acquisition will add a new dynamic to Shell's portfolio, namely LNG
capacity in the West Atlantic from Atlantic LNG in Trinidad & Tobago, and in
the East Pacific from Peru LNG. These additions will complement Shell's
existing LNG capacity in Africa, Asia, Australia, the Middle East and Russia.
The acquisition should add some 7.2 million tonnes per annum (mtpa) of LNG
volumes through long-term off-take agreements, including some 4 mtpa of equity
LNG plant capacity.
Shell expects to add value to this portfolio by optimizing the new LNG flows in
our world-wide customer base. Subject to successful completion, the new
portfolio is expected to immediately provide additional cash flow to Shell,
with limited on-going capital expenditure requirements.
The transaction, which has an effective date of 1 October 2012, is expected to
close in the second half of 2013 or early 2014, subject to regulatory approvals
and other conditions precedent.
Additional information:
Shell has agreed to acquire from several Repsol subsidiaries which own key LNG
businesses of Repsol. Upon completion, after securing regulatory approvals and
meeting other conditions precedent, the transaction will add:
a. Net 4.2 mtpa equity LNG plant capacity comprising:
* ALNG trains 1-4 14.6 mtpa capacity, on a 100% basis (20-25% equity per
train); operated by Atlantic LNG Company of Trinidad and Tobago
* Peru LNG 4.45 mtpa capacity, on a 100% basis (acquisition: 20% equity; 100%
offtake); operated by Peru LNG Company
* BBE power plant in Spain (25%, 800MW); operated by Bahía de Bizkaia
Electricidad S.L.
* A fleet of LNG carriers, comprising both long term and short term time
charters.
b. A material LNG marketing and trading operation, with 7.2 mtpa of LNG
volumes through long-term off-take agreements.
c. As part of this agreement, Shell has committed to supply around 0.1 mtpa of
LNG to Repsol's Canaport LNG terminal in Canada over a period of 10 years.
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