BG Sells Natural-Gas Pipeline for $5 Billion

By Andrew Peaple 

LONDON-- BG Group PLC said Tuesday it had agreed to sell wholly owned subsidiary QCLNG Pipeline Pty., which owns the pipeline running from two of its natural-gas fields in Australia, to gas infrastructure company APA Group for $5 billion.

The disposal is part of the U.K. oil and gas company's plans to sell off noncore assets, and it had previously said it would look to sell the pipeline before year-end. The company, once a darling of the U.K. stock market, has struggled in recent times with stagnating production and cost overruns on big projects.

BG said it expected to complete the deal to sell the 543-kilometer pipeline network, which links BG's gas fields in southern Queensland to export facilities on Australia's east coast, in the first half of next year.

"The sale of the QCLNG pipeline is in line with our strategy to focus on BG Group's core areas of oil and gas exploration and production and liquefied natural gas," said Andrew Gould, BG's interim executive chairman, in a statement.

Write to Andrew Peaple at [e-mail]

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