AGL Energy Ltd., Sydney, has ended the agreement to sell its natural gas assets in north Queensland to the Order Moranbah Holdings group that was originally announced in August 2017 (OGJ Online, Aug. 28, 2017).
Order Moranbah is a consortium of Chinese gas distribution company Shandong Order Gas Co. and Australian energy investment company Orient Energy Pty. Ltd.
AGL gave few details of the cancellation, saying only that certain conditions precedent were unable to be satisfied to secure counterparty support for the sale to proceed.
The assets comprise AGL’s 50% interest in each of the Moranbah Gas Project Joint Venture (MGPJV) and the North Queensland Energy Joint Venture (NQEJV) as well as AGL’s participation rights in the exploration permit ATP1103 in the Bowen basin.
The MGPJV includes producing gas fields near Moranbah and associated gas sales contracts. The NQEJV includes transportation rights on the North Queensland gas pipeline, a power purchase agreement to toll gas through the Yabulu power station and gas sales and purchase agreements.
The Arrow Energy group, a company owned 50-50 by Royal Dutch Shell PLC and PetroChina, is the 50% joint venture partner in the AGL assets.
The overall sale agreement had followed AGL’s announcement in February 2016 that the company intended to exit the upstream gas sector.