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Shell announced new buy and sales deals in Asia

Staff Writer |
Royal Dutch Shell's QGC joint venture announced two new gas sales agreements with large domestic customers.

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The deals will see the venture supply gas for power generation in South Australia and manufacturing in Queensland.

Shell announced it will supply around 8 petajoules of gas to Engie's Pelican Point power plant in South Australia for five months over the peak winter period to help secure electricity contracts to major industrial users.

An 18-month agreement will supply gas from Queensland's Surat Basin gas fields to Orica's Yarwun facility near Gladstone, which produces explosives and cyanide for the mining industry.

Royal Dutch Shell PLC (RDSA) has taken a step toward an exit from its New Zealand assets with a deal to sell its 50% stake in a natural-gas field to its local venture partner, Todd Energy.

The agreement will also see Shell take full control of a joint venture company that operates two further gas ventures in New Zealand, simplifying Shell's operating structure as it looks to offload the assets. Financial terms weren't disclosed.

The sale of its stake in the Kapuni field in New Zealand's Taranaki region to Todd Energy follows a review of operations in the country announced by Shell in December 2015 as part of its efforts to refocus its natural-gas and deep-water oil businesses following a slump in oil prices.

Shell has operated in New Zealand for about 100 years and its businesses account for around half of New Zealand's natural-gas production and a large chunk of light oil output.

Kapuni was discovered in 1959 and was New Zealand's first commercial onshore natural-gas field.

Shell has announced the conditional sale of its Liquefied Petroleum Gas (LPG) business in Hong Kong and Macau to DCC Energy for a total enterprise value of US$ 150.3 million (approximately HK$ 1,165 million).

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