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BG group to sell Australian gas pipeline business for $5b

BG group to sell Australian gas pipeline business for $5b

CANBERRA: BG’s natural gas fields in southern Queensland to a liquefied natural gas export facility at Gladstone, on Australia’s eastern coast.BG Group has agreed to sell its Australian pipeline business for $5bn to pay back some of its debts and raise money for investments elsewhere.

The UK energy company has struck a deal to sell its wholly-owned QCLNG Pipeline subsidiary to APA Group, Australia’s biggest gas infrastructure company.The business was only valued at $1.6bn on BG’s books, but the profit from the sale will be partly offset by a tax impairment on its remaining QCLNG assets, which is expected to be about $2bn. The pipeline tariff is expected to lift APA’s earnings before interest, taxes, depreciations and amortisations by about $390m next year.