Shell closes on Repsol LNG asset acquisition

Royal Dutch Shell PLC reported the completion of its acquisition of Repsol SA’s LNG portfolio outside North America for a reduced net cash purchase price of $3.8 billion. The deal was first reported in February 2013 (OGJ Online, Feb. 26, 2013).

Shell will assume $1.6 billion of balance sheet liabilities relating to existing leases for LNG ship charters.

The company will now undertake an additional 7.2 million tonnes/year of directly managed LNG volumes, encompassing LNG supply in the Atlantic from Trinidad and Tobago, and in the Pacific from Peru.

Specifics of the deal include:

• Net 4.2 million tpy equity LNG plant capacity, increasing Shell’s equity LNG capacity to 26 million tpy from 22 million tpy.

• Atlantic LNG Trains 1-4; 14.8 million tpy capacity on a 100% basis (20-25% equity for each train); operated by Atlantic LNG Co. of Trinidad & Tobago.

• Peru LNG 4.45 million tpy capacity, on a 100% basis (acquisition: 20%; equity: 100% offtake), operated by Peru LNG Co.

• A fleet of LNG carriers, comprising long-term and short-term time charters.

• LNG volumes of 7.2 million tpy through long-term off-take agreements.

As part of this agreement, as previously disclosed, Shell has committed to supply 100,000 tpy of LNG to Repsol’s Canaport LNG terminal in Canada over 10 years.

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