Shell completes disposal of last Petronas LNG asset

Shell Gas Holdings, a subsidiary of Anglo-Dutch multinational oil and gas behemoth Royal Dutch Shell, has completed the sale of its 15% shareholding in Malaysia LNG Tiga to the Sarawak State Financial Secretary for $750m.

Shell will net approximately $640m as a result of the transaction that will also see SFS, an existing MLNG Tiga shareholder, boost its stake in MLNG Tiga to 25%.

Petronas, Nippon Oil, and Diamond Gas, a Mitsubishi subsidiary, are also major shareholders in MLNG Tiga, which operates out of Petronas' LNG complex in Bintulu.

Shell said the disposal was consistent with its strategy to "simplify its portfolio" and reshape Shell into a simpler, more resilient and focused company.

Following the expiry of the MLNG Satu and Dua joint venture agreements, MLNG Tiga was Shell's only remaining interest in the Petronas LNG complex.

"Completion of this sale demonstrates the clear momentum behind Shell's delivery of its global divestment programme," the company said on Wednesday.

"Shell continues to have a strong business in Malaysia and remains committed to the country."

As of 0940 BST, Shell shares had ticked up 0.86% to 2,685p.