AGL Energy has announced it will sell its North Queensland gas assets to a consortium of Shandong Order Gas and Orient Energy.
The assets comprise AGL’s 50 per cent interest in each of the Moranbah Gas Project Joint Venture (MGPJV) and the North Queensland Energy Joint Venture (NQEJV) and AGL’s participation rights in the ATP1103 exploration licence located in the Bowen Basin.
Arrow Energy is the joint venture partner in the MGPJV, NQEJV and ATP1103 assets.
The sale agreement is subject to pre-emptive rights Arrow holds over the MGPJV and NQEJV assets.
“If Arrow does not exercise these pre-emptive rights, the sale to Shandong and Orient remains subject to receiving Australian and Chinese regulatory approvals and securing consents from joint venture counterparties,” AGL Energy said in a statement.
The agreement is consistent with AGL’s announcement last year that it intended to exit the exploration and production of natural gas.
The MGPJV comprises producing gas fields near Moranbah and associated gas sales contracts, while the NQEJV comprises transportation rights on the North Queensland gas pipeline, a power purchase agreement to toll gas through the Yabulu power station and gas purchase and sale agreements.