Energy giant AGL has agreed to sell its North Queensland gas assets to an Asian-Australian consortium – continuing its intentions to exit the exploration and production of natural gas.
Fifty per cent of two joint ventures (JV) including the Moranbah Gas Project and North Queensland Energy will be sold to Shandong Order Gas, in China, and Australian energy investment company, Orient Energy.
The agreement is subject to pre-emptive rights of Arrow Energy, who partner AGL in the Bowen Basin projects.
If Arrow agrees, the sale also remains subject to receiving Australia and Chinese regulatory approvals and consent from JV counter-parties.
Shandong is a Chinese gas distribution company that supplies gas to seven million residents and 20,000 industrial customers. It owns and operates 3,000km of gas pipelines.
Orient has extensive experience in the exploration and production of gas in the Bower Basin.
In February last year, AGL announced that it intended to exit the exploration market for natural gas and included the impairment of the carrying value of AGL’s gas exploration, evaluation and development assets.