Shell Gas expects to divest its LPG businesses in China by June 30

A Royal Dutch/Shell Group subsidiary, involved in negotiations to sell its seven liquefied petroleum gas facilities in China, expects to divest the last one by June 30. The deal involves an LPG terminal and storage tanks in southern China.


By an OGJ Correspondent

BEIJING, Apr. 27 -- Royal Dutch/Shell Group subsidiary, involved in negotiations to sell its seven liquefied petroleum gas facilities in China, expects to divest the last one by June 30.

The final deal involves an LPG terminal and storage tanks in southern China's Shenzhen.

Shell Gas said its seven China LPG facilities were built between 1987 and 1997 at a cost of $70 million. The assets, built as joint ventures with Chinese entities, included LPG terminals, storage facilities, and bottling plants.

They were in the cities of Shenzhen, Shunde, Shantou, Suzhou, Hainan, Qingdao, and Zhangjiagang.

Last year, Shell Gas decided to divest its Chinese LPG assets because of disadvantages encountered operating in a market where its health, security, and environment standards differed widely from competitors.

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