PERTH (miningweekly.com) – Integrated energy company AGL Energy will divest of its North Queensland gas assets to a consortium of Chinese and Australian companies.
ASX-listed AGL said on Friday that its 50% interest in each of the Moranbah gas project joint ventures (JVs) and the North Queensland Energy JV, as well as its participation rights in a Bowen basin exploration licence, will be sold to Shandong Order Gas and Orient Energy.
The sale agreement is subject to JV partner Arrow Energy not exercising pre-emptive rights that it holds over the assorted JV assets, as well as to both Australian and Chinese regulatory approvals.
AGL told shareholders that the sale of its JV interest in the gas assets was consistent with the company’s strategy to exit the exploration and production of natural gas. The decision to exit exploration and production assets was announced in early 2016 and stemmed from the volatility of commodity prices and the long development lead times required by the projects.