BG Group reported Wednesday that it has agreed to offload a 65.12 percent stake in Gujarat Gas to India's Gujarat State Petroleum Corporation (GSPC) for $470 million.
The sale of its majority stake in Gujarat Gas means that BG has now ramped up agreed disposals worth $4 billion, edging it closer to the $5 billion target that the company had set for itself. The deal is subject to regulatory approval.
BG had earlier in May this year revealed that the company would need to spend $5.4 billion more than it had originally estimated for its liquefied natural gas project in Queensland – also known as the Queensland Curtis LNG (QCG) project – due to local market cost pressures, regulatory compliance and scope change. In the same month, BG sold a 40 percent equity interest in two gas-fired power generation plants in the Philippines for cash proceeds of $360 million, and 60.1 percent of its holding in Brazil's Comgás for $1.7 billion. Later in June, BG committed to $2.07 billion worth of hybrid bonds.
The $20.4 billion QCG project involves an initial drilling program of over 2,000 gas exploration wells. It also entails constructing 336 miles (540 kilometers) of main pipe network that connects the gas fields to two LNG processing trains on Curtis Island. The two LNG trains have a total processing capacity of 8.5 million metric tonnes per annum.
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