China's CNOOC to buy Australian LNG from BG

BG Group announced it has signed binding agreements with CNOOC for the sale of certain additional interests in the Queensland Curtis LNG (QCLNG) project in Australia for $1.93 billion and for the supply of an additional 5 million tpy of LNG.

CNOOC will reimburse BG Group for its share of QCLNG project expenditure incurred from January 2012.

Agreements exclude any interest in the Train 2 liquefaction facility, transmission pipeline and QCLNG project common facilities.

Completion of the transaction is expected by the end of the year.

BG Group's Australian business QGC Pty Ltd. remains operator and retains majority ownership of the QCLNG project.