A/S Norske Shell has entered into a binding agreement to sell its interests in natural gas transport infrastructure joint venture Gassled to Infragas Norge AS for NOK 3,925 million (USD 730 million at current exchange rate). A/S Norske Shell is a 100% owned subsidiary in the Royal Dutch Shell group.
Gassled is Norway’s integrated gas transportation system and processing facilities, which transports most of the gas production on the Norwegian Continental Shelf (NCS) to consumers on the European continent and in the United Kingdom.
“This sale is a further step in our strategy of exiting non-strategic assets and focusing on major growth projects,” said David Loughman Managing Director in A/S Norske Shell. “Shell’s growth strategy for Norway is unchanged.”
The agreement with Infragas Norge AS relates to Shell’s 5.0% interest in Gassled JV (through a Participants’ Agreement) and associated interests of 3.3% in Dunkerque Terminal and 2.5% in Zeepipe Terminal.
Gassled is a joint venture established in 2003. It provides transportation services on an open access basis to producers on the Norwegian Continental Shelf. Licence partners in Gassled include Petoro AS, Statoil AS, Njord Gas Infrastructure AS, Total E&P Norge AS, Norsea Gas AS, ConocoPhillips Skandinavia AS, Eni Norge AS, Dong E&P Norge AS, GDF Suez E&P Norge AS and RWE Dea Norge AS.
Infragas Norge AS is an indirect wholly-owned subsidiary of the Public Sector Pension Investment Board – one of Canada’s largest pension investment managers, with over CAD $58 billion of assets under management as at 31 March, 2011.
The transaction is subject to approval by the relevant Norwegian authorities and to consents by the Gassled JV partners. The parties’ intention is to close in Q4 2011.