Australia’s AGL Energy selling North Queensland gas assets
AGL Energy, the company looking to build an LNG at Crib Point in the Australia’s state of Victoria has agreed to sell its North Queensland gas assets to a consortium of Shandong Order Gas and Orient Energy.
The assets comprise AGL’s 50 percent interest in each of the Moranbah gas project joint venture (MGPJV) and the North Queensland Energy joint venture (NQEJV) and AGL’s participation rights in the ATP1103 exploration license located in the Bowen Basin, AGL said in a statement.
Arrow Energy is the joint venture partner in the MGPJV, NQEJV and ATP1103 assets.
The MGPJV comprises producing gas fields near Moranbah and associated gas sales contracts. The NQEJV comprises transportation rights on the North Queensland gas pipeline, a power purchase agreement to toll gas through the Yabulu power station and gas purchase and sale agreements.
AGL’s sale agreement with Shandong and Orient is subject to pre-emptive rights Arrow holds over the MGPJV and NQEJV assets.
If Arrow does not exercise these pre-emptive rights, the sale to Shandong and Orient remains subject to receiving Australian and Chinese regulatory approvals and securing consents from joint venture counterparties, AGL’s statement reads.
The sale is in line with the company’s plan’s to exit the exploration and production of natural gas.