Shell instigates $94 billion takeover

Shell is set to take over BG Group and its Queensland Curtis LNG project, which loaded its first cargo in December.

Shell is set to take over BG Group and its Queensland Curtis LNG project, which loaded its first cargo in December.

By Courtney Pearson

April 9, 2015

ROYAL Dutch Shell’s $94 billion play for gas producer BC Group might lead to one the sector’s biggest-ever takeover deals.

If successful, the transaction means that Shell would take control of the Queensland Curtis LNG (QCLNG) plant on Curtis Island, which is a joint venture between BG Group and QGC.

The the takeover would make Shell the biggest company in the market, Shell chief financial officer Simon Henry told a press conference in London, according to the ABC.

“We will become the largest private LNG company in the world, and by a factor of two…we’ll have a leading position in the market for many years to come,” he said.

The new company would be worth about $387 billion.

Shell chief executive Ben van Beurden said the two companies were a good fit.

“The combination with BG will accelerate our financial growth strategy, particularly in deep water and LNG – both of these are priorities for Shell and areas where the company is already one of the industry leaders.”

“We see strong growth potential in Australia, from Shell’s share in Gorgon and Prelude and BG’s Queensland LNG, totalling 45 million tonnes per annum by 2018, based on projects that are under construction today – an increase of almost 80 per cent in equity liquefaction capacity compared to Shell alone at 25.6 mtpa at the end of 2014,” Mr van Beurden said.