Shell sells minority interest in QCLNG Common Facilities for US$2.5 billion

Global law firm Norton Rose Fulbright has advised Shell on the sale of a 26.25 per cent interest in the Queensland Curtis LNG (QCLNG) Common Facilities to Global Infrastructure Partners Australia for US$2.5 billion.

Shell remains the majority owner and operator of the Common Facilities which include LNG storage tanks, jetties and operations infrastructure that service QCLNG’s LNG trains.

This multi-billion dollar transaction is one of Shell’s most significant commercial undertakings in Australia in recent years and globally, is one of the first significant acquisitions by an infrastructure player in mid-stream LNG assets. 

The team was led by Brisbane-based partner Keira Brennan and Perth-based partner Paul Lingard. 

The team advised on all aspects of the transaction and developed an optimal transaction structure that included the establishment of a new joint venture coupled with the execution of a suite of documents required to achieve the effective streaming of income and stapling of risk to a new joint venture participant. Under COVID-19 conditions, all due diligence, negotiations and signing of the transaction occurred virtually.

The team worked closely with Shell’s in-house legal team which consisted of Peter Lorbeer in Perth and Trent Simon in Brisbane.

Keira Brennan commented:

“This was a unique opportunity for us to workshop and develop innovative solutions for a complex transaction – all while working completely remotely. It has been a powerful reminder of the ability to build strong team and client relationships regardless of where we are located.”

Keira and Paul were supported by partner Gavin Scott, special counsels Nikki van der Meer and Michelle Ralston, senior associate Jessica Rusten, associates Frances Hewitt and Ellen Whittred, and lawyer Alvin Ngo.