Shell could get its hands on Repsol's LNG assets

Anglo-Dutch oil mammoth Shell could be close to buying the liquefied natural gas (LNG) business of Spanish company Repsol.

Anglo-Dutch oil mammoth Shell could be close to buying the liquefied natural gas (LNG) business of Spanish company Repsol.

According to Spanish daily Cinco Dias, Respol is studying the possible sale of its LNG assets in Peru, Trinidad and Tobago, Canada and Spain for around €2.0bn, less than an initial estimate of €3.0bn.

The paper's internet edition reported that Repsol's board will "probably approve" the divestment at its meeting scheduled for Wednesday January 30th.

French company GDF Suez and Russian companies Gazprom and Novatek have also been named as parties interested in the assets.

The sale would be part of Repsol's attempt to divest €4.5bn worth of assets before 2016 in an attempt to reduce its debt and keep its investment grade rating.

However, analysts have expressed some doubts behind Shell's rationale for the deal. Peter Hutton of RBC Capital Markets was cited as saying by Reuters: "We find the logic of such a deal difficult from Shell's perspective. We would not expect it to show much interest in Repsol's stakes in either Atlantic LNG or Canaport, but there may be some synergy on Peru LNG."

Shell's shares were up 0.61% at 2,295p by 15:19 in London.

BC

Recommended

Get healthy returns from these three healthcare stocks
Share tips

Get healthy returns from these three healthcare stocks

Professional investor Paul Major of the BB Healthcare Trust highlights three of his favourite healthcare stocks.
25 Oct 2021
Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021

Most Popular

Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
Emerging markets: the Brics never lived up to their promise – but is now the time to buy?
Emerging markets

Emerging markets: the Brics never lived up to their promise – but is now the time to buy?

Twenty years ago hopes were high for Brazil, Russia, India and China – the “Brics” emerging-market economies. But only China has beaten expectations. …
18 Oct 2021