The BG Group, proponents of an LNG export facility on Ridley Island, has been sold to Royal Dutch Shell.
The two companies announced a deal on April 8 that will see Shell, which is spearheading the LNG Canada project in Kitimat, pay approximately $70 billion to purchase the BG Group
BG’s deep water positions and strengths in exploration, liquefaction and LNG shipping and marketing will combine well with Shell’s scale, development expertise and financial strength. The consolidated business will be strongly placed to develop the growth projects in BG’s portfolio. The transaction will take time to complete, during which my team and I will remain committed to BG and our shareholders, and to safely delivering our 2015 business plan,” said BG CEO Helge Lund in a statement.
“This is an important transaction for Shell, accelerating the delivery of our strategy for shareholders. The result will be a more competitive, stronger company for both sets of shareholders in today’s volatile oil price world … we believe that the combination is in the interests of both our companies and their shareholders,” said Shell chair Jorma Ollila in a statement following the announcement, with Shell CEO Ben van Beurden noting “LNG is a very important component of this”.
Two global companies involved in developing liquefied natural gas export terminals in the Northwest are in discussions to become one firm.
The BG Group, which is proposing to construct a terminal on Ridley Island, has confirmed it is in advanced discussions with Royal Dutch Shell, which is spearheading the LNG Canada development in Kitimat, for a deal that would see Shell purchase the BG Group. Although the BG Group confirmed the news in a statement to the Financial Times, it declined further comment. However, the Financial Times says those familiar with the discussions say the deal could be worth more approximately $68 billion.
According to the report, Shell would need to announce its intention to make an offer for purchase before May 5.
Look for more on this story as it becomes available.