Shell Buys Natural Gas Assets for $6.2 Billion

Before you go, we thought you'd like these...
Before you go close icon

Royal Dutch Shellannounced today that it has agreed to acquire liquefied natural gas assets from Spain's Repsol for approximately $6.2 billion in cash and liabilities. The supplies are located in both the West Atlantic (Trinidad and Tobago) and the East Pacific (Peru. The new acquisitions are expected to add approximately 7.2 million tonnes per annum, or mtpa, to Shell's LNG volumes, including around 4 mtpa of equity LNG plant capacity. The agreement also includes a 25% stake in a 800 MW Spanish power plant, as well as a fleet of LNG carriers.

"Shell's worldwide LNG supply position and customer base means we are uniquely positioned to add value to Repsol's LNG portfolio, including through Shell's trading capabilities," said CEO Peter Voser in a statement today. "By optimizing the combined portfolios, we will increase our ability to bring LNG to areas that need it the most, adding value for Shell, our partners, and our customers."

Shell will pay $4.4 billion in cash for the reserves and will also assume $1.8 billion in balance sheet liabilities. Subject to regulatory approval and certain considerations, the purchase should be completed in late 2013 or early 2014.

The article Shell Buys Natural Gas Assets for $6.2 Billion originally appeared on Fool.com.

Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners