BG sells stake in Chile LNG terminal

Oil and gas producer BG Group has agreed to sell its 40 per cent interest in a company called GNL Quintero (GNLQ), the owner of a liquefied natural gas terminal in Chile.

The two-tranche stock purchase agreement could net BG $352m.

The first tranche involves the sale of 20% equity in GNLQ for $176m. The second 20% tranche, also valued at $176m, requires consent from lenders and other partners. Both transactions are expected to complete by the end of 2012.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

BG Group Chief Executive Sir Frank Chapman said: "The agreement reached today is another important milestone in the successful execution of BG Group's funding diversification and portfolio rationalisation programme."

He added: "BG Group was instrumental in delivering the GNLQ facility - the first onshore regasification terminal to operate in the southern hemisphere - and we will continue to be a key supplier of LNG into this important, counter-seasonal energy market."

BG's shares were up 0.8% by 10:32.

BS