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Royal Dutch Shell (NYSE: RDS-A ) (NYSE: RDS-B ) announced today that it has agreed to acquire liquefied natural gas assets from Spain's Repsol for approximately $6.2 billion in cash and liabilities. The supplies are located in both the West Atlantic (Trinidad and Tobago) and the East Pacific (Peru. The new acquisitions are expected to add approximately 7.2 million tonnes per annum, or mtpa, to Shell's LNG volumes, including around 4 mtpa of equity LNG plant capacity. The agreement also includes a 25% stake in a 800 MW Spanish power plant, as well as a fleet of LNG carriers.
"Shell's worldwide LNG supply position and customer base means we are uniquely positioned to add value to Repsol's LNG portfolio, including through Shell's trading capabilities," said CEO Peter Voser in a statement today. "By optimizing the combined portfolios, we will increase our ability to bring LNG to areas that need it the most, adding value for Shell, our partners, and our customers."
Shell will pay $4.4 billion in cash for the reserves and will also assume $1.8 billion in balance sheet liabilities. Subject to regulatory approval and certain considerations, the purchase should be completed in late 2013 or early 2014.