The Queensland Curtis LNG (QCLNG) venture owners are preparing to auction part of their shared infrastructure under a 20-year contract, according to sources familiar with the situation.
On offer will be 140,000 cubic metre LNG storage tanks, utilities including power plants, water, fuel and control systems and a jetty where LNG tankers berth to export liquefied natural gas, said four sources familiar.
Two LNG liquefaction facilities – known as LNG trains – share the assets on Curtis Island, near Gladstone about 500km north of Brisbane. The trains have separate ownership structures.
Shell is the operator and majority interest holder in QCLNG, also known as the QGC Venture. Its partners are China National Offshore Oil Corporation (CNOOC), which has 50% of Train 1 and Tokyo Gas, which has 2.5% in Train 2 alongside Shell.
It is not clear what the assets will sell for, but two of the sources said they are likely to be worth more than AUD 500m (USD 340m). The size of the deal will depend on whether existing debt used to finance the trains is included.
Several sources have pointed to Rothschild as the financial adviser. KPMG was conducting some early due diligence, according to two sources.
Although most infrastructure funds would prefer a controlling stake, assets such as this rarely come to market in Australia and the sources say both small and large local and offshore infrastructure funds are preparing to bid.